France raises its 2017 growth forecast to 1.9%

French economy set to exceed forecasts and continue to grow in 2018, says national statistics agency

By Hajer M'tiri

PARIS (AA) - France's 2017 GDP growth has been increased to 1.9 percent -- a rate not been observed since 2011 -- and will continue to grow at a relatively steady pace in the beginning of 2018, according to forecasts released by the National Institute of Statistics and Economic Studies (INSEE).

INSEE upgraded its growth forecast from 1.8 percent to 1.9 percent this year, higher than last year‘s 1.1 percent, than the government's 1.7 percent projection and than the central bank's 1.8 percent forecast.

The unemployment rate is also expected to fall to 9.4 percent by mid-2018, its lowest level since early 2012, according to the INSEE economic outlook published on Tuesday.

France currently has an unemployment rate of 9.5 percent, practically double that of the other big European economies such as Germany.

French President Emmanuel Macron has vowed to cut it to 7 percent by 2022.


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