INSEE cuts French growth forecasts
The French economy will grow 1.7 percent this year, not by 2.1 percent as previously expected as the business climate has deteriorated badly, the national statistics institute INSEE said Thursday.
"Over the summer months, business conditions in most advanced economies got a lot worse," after being hit earlier in the year when Japan's massive March earthquake disrupted international supply networks and undercut demand, it said.
INSEE said it expected growth of only 0.3 percent in the third quarter, falling away to nothing in the fourth quarter -- compared with its previous estimates given in June of 0.5 percent in both periods.
The government's latest forecast contained in the budget at the end of last month was for 2011 growth of 1.75 percent.
© 2011 AFP