Monday, December 20, 2010

France : prospects of moderate growth

France economic expansion will continue, in the coming months, at a moderate and stable pace. The Conference Board (CB) leading economic index, published today, for that country has continued to increase in October, but at a much slower rate than in the preceding months. The slight October increase (0.1 %) bears probably the mark of important strikes and demonstrations that took place during that month. From last April to October, the CB index increased by 2.7 %, compared to 3.6 % in the six preceding months.

The OECD leading index for France, which was published on December 13, points towards a stable pace of growth, higher than the long term trend of economic expansion.

Forecasts for France GDP from The Economist (December 11 edition) poll of forecasters go from a low of 1.0 % to a high of 2.1 % in 2011, about the same as for the euro area. The main risk to the outlook for France is related to the eventual consequences of refinancing the huge public debt of many euro area countries on the european banking system.

    

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