Economic news

French central bank raises 2023 growth outlook, trims 2024 and 2025

2023.09.18 14:18


© Reuters. FILE PHOTO: Tourists walk in front of the Eiffel tower in Paris, France, July 3, 2022. REUTERS/Benoit Tessier/File Photo

PARIS (Reuters) – France’s economy will grow slightly less than expected in the next two years due to weakness in its main trade partners, the central bank said on Monday, but it raised its 2023 forecast after a surprisingly strong second quarter.

The euro zone’s second-biggest economy is set to grow 0.9% this year, the Bank of France forecast in its quarterly economic outlook, revised up from 0.7% in June.

The improved outlook was due mainly to better-than-expected second-quarter growth of 0.5%, a figure that was boosted by refineries restarting after strikes, nuclear power output coming back on line after maintenance and the delivery of an oceanliner.

Next year, growth is forecast at 0.9% again, trimmed from 1.0% in June, before picking up to 1.3% in 2025, weaker than the 1.5% forecast by the central bank in June.

Although consumer spending is expected to improve in the coming two years as inflation subsidies, a weak outlook for the German economy – France’s main trade partner – and sluggish growth in China were expected to limit gains, the central bank said.

After peaking in February at 7.3%, France’s central bank forecast inflation would decline to average 5.8% this year, 2.6% next year and 1.8% in 2025 – just below the European Central Bank’s 2% target.

Lower inflation was expected to translate into higher real wages and possibly spur households to set less aside after a jump in the savings rate to nearly 19% in the second quarter.

France’s central bank said employment would remain strong this year although a lag between the labour market and the broader economy meant that more jobs would be shed than created from next year.

It estimated the unemployment rate would rise from 7.2% this year to 7.5% in 2024 and 7.8% in 2025.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 98,394.36 0.24%
ethereum
Ethereum (ETH) $ 3,424.12 2.19%
tether
Tether (USDT) $ 1.00 0.02%
solana
Solana (SOL) $ 256.95 1.63%
bnb
BNB (BNB) $ 664.65 2.59%
xrp
XRP (XRP) $ 1.47 4.07%
dogecoin
Dogecoin (DOGE) $ 0.438068 4.46%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 1.07 1.43%
staked-ether
Lido Staked Ether (STETH) $ 3,423.22 2.24%
tron
TRON (TRX) $ 0.215288 3.49%
stellar
Stellar (XLM) $ 0.588336 38.51%
avalanche-2
Avalanche (AVAX) $ 42.68 3.26%
the-open-network
Toncoin (TON) $ 6.48 16.27%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 0.44%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,059.37 2.24%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,182.31 0.05%
polkadot
Polkadot (DOT) $ 9.16 22.74%
chainlink
Chainlink (LINK) $ 17.84 6.37%
bitcoin-cash
Bitcoin Cash (BCH) $ 514.31 4.37%
weth
WETH (WETH) $ 3,425.16 2.25%
sui
Sui (SUI) $ 3.46 3.38%
pepe
Pepe (PEPE) $ 0.000021 2.87%
leo-token
LEO Token (LEO) $ 8.66 1.02%
near
NEAR Protocol (NEAR) $ 6.49 4.36%
litecoin
Litecoin (LTC) $ 101.41 2.35%
aptos
Aptos (APT) $ 13.02 2.06%
uniswap
Uniswap (UNI) $ 11.04 8.06%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,609.08 2.35%
hedera-hashgraph
Hedera (HBAR) $ 0.150903 0.97%
internet-computer
Internet Computer (ICP) $ 11.78 7.97%
crypto-com-chain
Cronos (CRO) $ 0.199331 6.34%
usds
USDS (USDS) $ 1.00 0.41%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.584942 12.57%
ethereum-classic
Ethereum Classic (ETC) $ 30.22 3.65%
render-token
Render (RENDER) $ 7.97 2.63%
bittensor
Bittensor (TAO) $ 539.68 4.49%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 16.00%
kaspa
Kaspa (KAS) $ 0.154041 1.13%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
arbitrum
Arbitrum (ARB) $ 0.888577 9.74%
bonk
Bonk (BONK) $ 0.000048 5.64%
cosmos
Cosmos Hub (ATOM) $ 9.17 19.20%
whitebit
WhiteBIT Coin (WBT) $ 24.74 0.48%
filecoin
Filecoin (FIL) $ 5.91 19.51%
vechain
VeChain (VET) $ 0.043319 7.76%
dai
Dai (DAI) $ 1.00 0.01%
mantra-dao
MANTRA (OM) $ 3.73 2.27%
dogwifcoin
dogwifhat (WIF) $ 3.34 0.29%
okb
OKB (OKB) $ 54.74 10.55%