Oil price hike no barrier to French growth: Sarkozy

21st October 2004, Comments 0 comments

LUXEMBOURG, Oct 21 (AFP) - French Economy Minister Nicolas Sarkozy said late Wednesday that there was no need to lower the 2005 economic growth forecast for France because of surging oil prices, saying such a move would dent confidence.

LUXEMBOURG, Oct 21 (AFP) - French Economy Minister Nicolas Sarkozy said late Wednesday that there was no need to lower the 2005 economic growth forecast for France because of surging oil prices, saying such a move would dent confidence.

"If we revise downward a growth forecast, we create a psychological counter-shock that would have no justification, and the economy is based on confidence," Sarkozy said after a meeting of eurozone finance ministers in Luxembourg.

Because of the upturn under way this year, "we are not taking too much risk" in maintaining a 2.5 percent forecast for growth in French gross domestic product in 2005.

Most experts are predicting global GDP growth of 4.0 percent next year, compared with 4.5 percent this year, which does not justify a modification of the outlook for the French economy, the minister noted.

© AFP

Subject: French News

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