The Bank of France sees strong economic growth this year as it gain strength from a favorable international environment and the weaker euro.
In the macroeconomic projections released Thursday, the central bank said France will expand on an average 1.2 percent this year, 1.8 percent in 2016 and 1.9 percent in 2017.
The favorable external environment includes cheaper oil and a weaker euro and the expansionary monetary policy within the euro area. In parallel, growth in the euro area is forecast to expand 1.5 percent in 2015, 1.9 percent next year and 2 percent in 2017.
Based on the latest economic indicators, the bank expects the second-largest euro area economy to grow around 0.3 percent in the second quarter of 2015. However, the bank cautioned that sharp rises in oil prices or in the euro exchange rate or the onset of geopolitical crises pose downside risks to growth projections.
The trade deficit is forecast to shrink to 1.6 percent of GDP in 2015 and 2016 as a result of declining energy bill. Assuming a gradual recovery in oil prices, the deficit should subsequently widen again in 2017, the bank said.
EU harmonized inflation is projected to average 0.3 percent in 2015 before rising to 1.4 percent in 2016 and 1.7 percent in 2017. The ILO jobless rate is forecast to rise to 10.3 percent in 2015 and to 10.1 percent in 2016.
rttnews.com
In the macroeconomic projections released Thursday, the central bank said France will expand on an average 1.2 percent this year, 1.8 percent in 2016 and 1.9 percent in 2017.
The favorable external environment includes cheaper oil and a weaker euro and the expansionary monetary policy within the euro area. In parallel, growth in the euro area is forecast to expand 1.5 percent in 2015, 1.9 percent next year and 2 percent in 2017.
Based on the latest economic indicators, the bank expects the second-largest euro area economy to grow around 0.3 percent in the second quarter of 2015. However, the bank cautioned that sharp rises in oil prices or in the euro exchange rate or the onset of geopolitical crises pose downside risks to growth projections.
The trade deficit is forecast to shrink to 1.6 percent of GDP in 2015 and 2016 as a result of declining energy bill. Assuming a gradual recovery in oil prices, the deficit should subsequently widen again in 2017, the bank said.
EU harmonized inflation is projected to average 0.3 percent in 2015 before rising to 1.4 percent in 2016 and 1.7 percent in 2017. The ILO jobless rate is forecast to rise to 10.3 percent in 2015 and to 10.1 percent in 2016.
rttnews.com
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