Bank of France forecasts 0.5-percent fourth-quarter growth

9th November 2010, Comments 0 comments

The French economy is set for growth of 0.5 percent in the last quarter of this year, an initial forecast by the Bank of France said on Tuesday.

The French statistics office INSEE is to publish third-quarter growth figures on Friday.

The Bank of France has estimated that the economy grew by 0.3 percent in the third quarter.

In September, INSEE forecast "moderate" growth of about 0.4 percent a quarter up to the end of the year.

Thanks to second-quarter growth of 0.7 percent, INSEE now sees the French economy growing by 1.6 percent in the whole of this year.

The government has targeted growth of 1.5 percent this year, in its budget statement for next year.

The growth rate is critical as it determines in turn forecasts for tax revenues at a time when France, like many of its European peers, is struggling to put its strained public finances in order.

© 2010 AFP

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