The French economy is expected to grow at an annual rate of 1.3% in the first six months of 2004 and is on course to grow by 2% in the whole year, the Bank of France said today.
Gross domestic product was expanding by 0.5% in both the first and second quarters, the central bank said. At these rates, annual GDP growth at the end of the first six months of the year would be 1.3%, the bank said in a monthly report on the economy.
Bank of France governor Christian Noyer said in an interview today that the French economy appeared to have attained 'a growth rate of 2%'.
Noyer told the French daily Le Parisien: 'Our studies of the economic situation show that we have regained today a growth rate of 2% and that the businesses' outlook is progressively improving in all the sectors. That backs the scenario of a gradual economic recovery in France and throughout the euro zone.
'What is important now is that confidence returns, particularly on the consumer side,' he added.
Separately, the central bank said that the business outlook index had climbed in March to 102, up from 101 in February and compared with 93 in March 2003.
