France: Growth acceleration underway - BNPP

According to analysts at BNP Paribas, a clear growth acceleration is underway for French economy and higher rates of growth should resume.

Key Quotes

“Households’ consumption is supported by the jobs recovery but restrained by the upturn in inflation. Investment and exports dynamics are favourable. Risks lie slightly on the upside.”

“We expect the output gap to slowly narrow and the unemployment rate to progressively decline, containing the rise in inflation. Fiscal policy should continue to combine growth supportive measures and consolidation ones. The fiscal deficit should not be a lot more reduced but it should remain below the 3% threshold.”