France Market
French economy in 2011 will continue to slow recovery
French Institute of Statistics and Economic (INSEE) economic forecast report released in 2011 the French economy will slow recovery, household consumption will continue to serve as the main driving force of economic growth, while the employment situation has been slowly but continuously to improve.INSEE macroeconomic director Sandrine Duchêne said, since the second quarter of 2009, the French economy out of recession, in 2010 the French economy grew 1.6% in 2011, the French economy will remain slow recovery trend.
The report predicts that the first half of 2011, French economic growth is not, first and second quarters, respectively, the chain will increase 0.3% and 0.4%. Meanwhile, the report stressed that the government expects economic growth in 2011 was 2%, to achieve this goal, the third and fourth quarter 2011 economic growth to reach 0.8% year on year.
Sandrine Duchêne said that due to the adverse international environment in 2011, the euro area the situation "fragile", the Member States to implement fiscal austerity in general, therefore, the prospects for economic growth in 2011 to be "cautious."
Report shows that, at present, in all areas of economic activity in France the situation is more favorable, especially in industry and services, construction of a little less. The next few months, driving French economic growth was primarily driven by domestic demand, although domestic demand is not very strong. At the same time, between now and 2011, business investment growth will gradually accelerate, mainly due to the improvement of financial conditions. Employment will be "gradual" improvement, 2011, the unemployment rate expected to be "slightly lower" expected 9.1 percent.
As the main driver of economic growth in France, 2011, the consumer will remain the main driver of economic growth in France, at present, France is not inflation, purchasing power of residents will remain modest growth. The fourth quarter of 2010, household consumption increased by 0.9% qoq, the first quarter of 2011 decreased 0.1%, 0.2% in the second quarter. However, due to the economic outlook is not good, people's savings rate will increase.
The report stressed that the Government's car subsidies ended in late 2010, so the fourth quarter of 2010, a peak of residents to buy cars, but the first quarter of 2011 will be a "negative effect."
The report predicts that the fourth quarter of 2010, the French foreign trade's contribution to economic growth will be negative rate is still mainly due to rapid growth in imports, however, the French foreign trade in 2011 a negative role in boosting economic growth will be reduced.