The French economy is set for slightly improved growth of 0.5% in the last quarter of this year, the Bank of France predicted today, with the country's yawning trade deficit edging down.
The Bank of France has estimated that the economy grew by 0.3% in the third quarter, with statistics office INSEE to publish official growth figures on Friday, after the OECD warned that France's economy could be slowing down.
By comparison, data in continental rival Germany released yesterday showed that exports from Europe's largest economy were up despite a surprise decline in industrial output on the month.
The OECD yesterday singled out Germany as a European economy heading for expansion, while Britain, France and Italy were heading in the opposite direction.
In September, INSEE forecast 'moderate' French growth of about 0.4% a quarter up to the end of the year, but thanks to second-quarter growth of 0.7%, INSEE now sees the economy growing 1.6% in 2010.
The government has targeted growth of 1.5% this year in its budget statement for next year. The growth rate is critical as it determines in turn forecasts for tax revenues at a time when France, like many of its European peers, is struggling to put its strained public finances in order.
The French trade balance showed a slightly improving deficit of €4.68 billion in September down from €4.98 billion in August, customs data showed today.
Exports in September dropped to €32.89 billion from €33.94 billion in August, with imports at €37.58 billion from €38.91 billion.
The customs figures showed that aerospace deliveries and pharmaceutical exports were down, along with exports to the European Union, especially Germany and newer member states. Imports of chemicals and electronics were notably also down.
France's state deficit receded slightly to €124.2 billion at the end of September, compared to €125.6 billion a year ago, as the economy picked up after the crisis and thanks to 2009 stimulus measures, the budget ministry said.
State spending at the end of September this year reached €310.1 billion, compared to €263.9 billion last year. 'Spending progress is generally in line with budget predictions,' the ministry said in a statement.
