According to the reports by the central bank of France, GDP growth has slowed down as compared to the beginning of the year, but still keeps increasing in the current quarter. From April to June, the country’s economy is expected to expand by 0.3% on a quarterly basis. The growth is confirmed by the business confidence forecast by France’s central bank.
Compared to the previous quarter, the increase of GDP in the first quarter of 2015 amounted to 0.6%. In the manufacturing industry, business confidence index rose from 98 points in April to 99 in May. As for the services sector, the value remained steady at a level of 95. In the construction sector, the index grew from 92 to 93 points.
The French regulator predicts 1.2% economic growth this year, 1.8% in 2016.
The forecast published by the financial institution shows that the average inflation rate in 2016 will amount to 1.4%. The current consumer price growth rate remained at 0.3%.
However, some factors contradict the expected French economy’s perspectives. For example, the analysts from the central bank believe that thanks to a tax burden reduction, enterprises can spend this money on increasing wages or paying debts which will have a negative impact on future investments.
