French growth expected to slip this year

22nd June 2007, Comments 0 comments

PARIS, June 22, 2007 (AFP) - French economic growth is expected to dip slightly to 2.1 percent this year from 2.2 percent in 2006, still well below the eurozone average, the national statistics institute INSEE said Friday.

PARIS, June 22, 2007 (AFP) - French economic growth is expected to dip slightly to 2.1 percent this year from 2.2 percent in 2006, still well below the eurozone average, the national statistics institute INSEE said Friday.

"There will be no major change in the pace of French growth," said Eric Dubois, head of the economic department at INSEE.

The report noted that France was expected to lag its fellow members of the 13-nation eurozone, where output in 2007 is projected to expand by 2.8 percent.

The INSEE 2007 forecast for French growth is below those of the government, 2.25-2.50 percent, the European Union, 2.4 percent, and the Organisation for Economic Cooperation and Development, 2.2 percent.

It said momentum this year would be driven by household consumption, which would get a boost from higher salaries and lower taxes.

INSEE predicted that 300,000 jobs would be created in France this year, up from 256,000 in 2006, and that household purchasing power would rise by 3.2 percent after an increase of 2.4 percent in 2006.


Copyright AFP

Subject: French news

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