French bank forecasts 2 pct growth in 2005

18th May 2005, Comments 0 comments

PARIS, May 18 (AFP) - The French economy is heading for growth this year closer to 2.0 percent than 2.5 percent, the governor of the Bank of France, Christian Noyer, said on Wednesday.

PARIS, May 18 (AFP) - The French economy is heading for growth this year closer to 2.0 percent than 2.5 percent, the governor of the Bank of France, Christian Noyer, said on Wednesday.  

He told the i-tele television channel: "At the moment we are on a slope closer to 2.0 than 2.5 (percent), that is true.  

"It is true when one looks at the last three quarters and at what can be expected for the second quarter of this year. We are more on a tangent of 2.0 percent, and more likely less than more."  

The government has forecast that the French economy will grow by 2.0-2.5 percent this year.  

Noyer also warned about house prices which have risen strongly, saying that there would not be a "crash" if prices ceased rising.  

But he aded: "We should be cautious. So far the rise of property prices can be explained, it has been strong and it is time it stopped. If it were to continue it would become dangerous."

 

© AFP

Subject: French News

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