Bank of France view on economic growth - Forcasts for increase in GDP
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Bank of France view on economic growth - 12 June 2017

2017-11-20 07:05:45

Growth in the French economy is expected to accelerate in the second quarter to 0.5%, after a 0.3% increase in gross domestic product (GDP) in the first quarter, said the Bank of France (BF) on Monday, June 12.

In this second estimate of GDP for the second quarter, the French central bank thus maintained its forecast published on 9 May unchanged.

According to the monetary institution, based on its monthly survey of business leaders, industrial production increased more strongly in May than in April. But it is expected to grow less strongly in June.

Growth forecasts

In services, activity was dynamic. "The temporary work starts again, while the computer activities pause" explains the BF in its release. Business leaders remain optimistic for June and expect a rise in activity. In the building sector, activity rebounded both in the structural work and in the second work, and the rise is expected to continue in June.

On Friday, Banque de France (BF) raised its growth forecasts for France to 1.4% in 2017, against 1.3% previously announced, and then to 1.6% in 2018 and 2019 (against 1.4% and 1, 5%), mainly because of the "improvement in the international environment".

With these new forecasts, the French central bank is in line with most international institutions, such as the International Monetary Fund, which forecasts a 1.4% increase in GDP this year and 1.6% Next year.

On the other hand, in its draft budget bill, the previous government had expected a growth of 1.5% in 2017. A figure on which the new executive has not yet pronounced.

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