French growth expected at 1.3% in 2011
The chances of achieving economic growth of 2.5% in France in 2011, as required by government depart according to a Reuters poll of economists, who consider the measures of fiscal consolidation in Europe will weigh on demand .
Seventeen economists polled by Reuters expect, thereby increasing the gross domestic product by 1.3% next year (median forecast), against 1.7% in a poll conducted in April equivalent.
The median forecast for 2010 is 1.3% against 1.4% in April.
"The austerity measures in France and neighboring countries will weigh on demand and we expect a decline in consumption and investment in a number of European countries," said Maxime Lemerle, an economist at Euler Hermes.
Economists now expect that consumer spending, a pillar of French growth, will increase by only 1.1% in 2011, when they expected 1.4% in April.
Over two thirds of French exports to Europe by the weak demand in the region should weigh heavily on trade, according to Maxime Lemerle, which forecasts growth of 1.1% of GDP in 2011, a cons, 8% previously.
The government expects growth to reach 2.5% annually between 2011 and 2013, which would help reduce the government deficit from 8% in 2010 to 6% in 2011, 4.6% in 2012 and 3% in 2013 .
Slower growth could lead to additional measures to reduce the deficit or raising taxes.
"If we have less growth, certain expenses will tend to increase as those related to employment. So I think they might have to raise taxes a bit," said Dominique Barbet, economist at BNP Paribas.
The Economy Minister Christine Lagarde said she would not rule to revise the growth forecast for 2011 after the publication in mid-August GDP figures for the second quarter.
His counterpart on the Budget, Baroin, said the deficit reduction targets were met, although growth was below forecast.
The government plans to reduce the deficit to 6% in late 2011, 40 billion euros less than in 2010.According Baroin, 15 billion will come from the extinction of the recovery plan, saving 14 billion and 11 billion of revenue increases.
Published on 15 Jul 2010 in business opportunity, different, marketing, profitable, success, by admin
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