France Has Subscribed Itself To Slow Economic Outlook for 2011

The French government has lowered  its economic growth forecast for 2011 from 2.5% to 2% this past Friday. This change occurred after an economic meeting in Brégançon near Marseille (south), according to AFP.

“The economic growth achieved in the first half of 2010, will allow a forecast of 2% for 2011,” said the French presidency, coming out of the special meeting convened by the head of state Nicolas Sarkozy before the political season.

According to figures released a week ago by the National Institute of Statistics and Economic Studies (INSEE), France has achieved a growth of respectively 0.2% and 0.6% in the first and second quarter.

The government was counting on an economic growth of 1.4% in 2010 and 2.5% in 2011.

“Given the rebound in activity, the prospect of growth of 1.4% will be reached or exceeded for the year 2010,” noted the French presidency in a statement.

But the forecasting capabilities of 2.5% was considered “too optimistic” by the International Monetary Fund (IMF), which provides a low growth of 1.6%.

According to economists, the measures announced by the French government as part of the austerity policy designed to reduce the deficit, will have time to take effect and will impact on economic growth next year.

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