[Paris 3rd Reuters]-The National Institute of Statistical Economics (INSEE) announced on the 3rd that the French economy is expected to maintain a steady pace this year against the backdrop of a strong labor market and rising incomes.
INSEE expects the French economy to grow 0.3% on a quarterly basis this year. We expect the world economy to expand in the face of difficulties, and in contrast to the slowing trend seen in most eurozones, particularly Germany, which is in a state just before the recession.
Even though the outlook for France's major trading partners has faded, INSEE has not changed the outlook for this year's annual growth rate from 1.3%, as there is no reason to revise France's growth outlook. The growth rate forecast that the government assumed for the next budget plan was 1.4%.
The number of employees increased by 16.66,000 in the first half. Although the growth will slow in the second half, it is still expected to increase by 98,000. As a result, the unemployment rate is expected to be 8.3%, the lowest level since 7.8% at the end of 2008, just before the global financial crisis.
Meanwhile, low inflation and tax cuts will continue to increase additional income for consumers, and this year's purchasing power growth rate is expected to rise to 2.3%.
According to INSEE, some of the income goes to savings, and this year's savings rate is expected to rise to 15.1% *, but consumption spending, which has traditionally been a driving force for French growth, is 1. It is expected to show a healthy growth of 1%.
