Growth of 2.0-2.5 percent foreseen in 2007, 2008

6th March 2007, Comments 0 comments

PARIS, March 6, 2007 (AFP) - The French economy is expected to expand by 2.0-2.5 percent this year and next, the economy ministry said on Tuesday.

PARIS, March 6, 2007 (AFP) - The French economy is expected to expand by 2.0-2.5 percent this year and next, the economy ministry said on Tuesday.

It said its prediction assumed oil prices at 65 dollars a barrel and an exchange rate of 1.30 dollars to the euro.

France's public deficit, covering government spending at the national and regional levels as well as on social welfare, is seen as coming to 2.4 percent of gross domestic product in the 2007 and 1.7 percent in 2008.

The shortfall in 2006 is estimated to have shrunk by 0.3 percentage points to 2.6 percent of output. The national statistics institute INSEE is to issue a first picture of French public finances in 2006 at the end of March.

The ministry foresaw the country's public debt coming to 64.6 percent of gross domestic product in 2006, a decline of 2.0 points in response to a sharp fall in the public deficit as well as the impact of tax and privatisation receipts.

It said unemployment was likely to continue "its rapid decline" 2007 and 2008 from a current level of 8.6 percent of the workforce.

Inflation, according to the ministry, should come to 1.3 percent this year and 1.4 percent in 2008 after 1.6 percent in 2006.

Copyright AFP

Subject: French news

0 Comments To This Article