News Line

French growth is for the "go-slow"

June 24, 2010

This figure corresponds to the last decimal to government projections.

The depreciation of the euro this year should have a significant impact on growth, up 0.5 points. In other words, without changes in exchange rates, would the French business grew by only 0.9% in 2010 cash till payday.

Exports will of course be the first to benefit. After falling over 12% last year, they should rebound by 8.6% this year. Moreover, for the first time since 2002, foreign trade has not weighed on growth since the beginning of the year.

The current dynamism of exports "should gradually spread to domestic demand," said INSEE. Consumption could leave a bit in the second half after being subdued at first.

• The trade deficit widens
• The moral of households is still improving in October
• Bread prices will increase
• The IMF is more optimistic about Europe than the U.S.
• Further decrease in consumption