Forex Notes

Economy Of France Grown By reducing Purchase Of Cars

Following the results of 4 quarters French economy grew stronger than economists' forecasts on the background that the government program reduced the purchase of cars had catalytic effect on avtopriozvodstvo and consumer spending.

GDP growth shows that during the previous two quarters of the state of the French economy has improved markedly. GDP growth was recorded by the government program reduced purchases of cars, which stimulated the growth of consumer spending. Remember that the program and $ 1 thousand euros ($ 1,380) expired in January.

"The fourth quarter is accompanied by factors such as the effect of program buying cars - said Dominique Barbet, an economist at BNP Paribas in Paris - but the presence of a real recovery can not be denied."

Last year the economy declined by 2,2%, while the government forecast was -2.25%. Sarkozy is trying to revive economic growth by reducing the budget deficit and to combat rising unemployment.

The government predicts that this year the economy will grow by 1,4%. This figure coincides with the estimate provided by the OECD, repeated today, French Finance Minister Christine Laggard in an interview on the radio RMC.