PARIS (MNI) – French economic growth is likely to be somewhat less
robust after the exceptional 1.0% GDP surge in 1Q, but indicators are
still flashing “green”, Bank of France Governor Christian Noyer said
Thursday.
Since the one-off 1Q boost from the expiration of the car-scrapping
bonus and the rebound in construction will not be repeated, growth in
coming quarters will be “a bit less strong”, but still “elevated,” Noyer
said in a radio interview, noting the BoF’s projection for 0.5% GDP
growth in 2Q.
Given the momentum of 1Q, full-year growth could be “at least 2%,”
he ventured.
Looking ahead to next year’s presidential elections, Noyer reminded
all political forces of France’s commitment to roll back its public
deficit to less than 3% of GDP by 2013. Indeed, to lower the high debt
level, a balanced budget should be achieved “as soon as possible.”
Noyer was full of praise for Finance Minister Christine Lagarde,
who on Wednesday launched her candidacy for the succession of Dominique
Strauss-Kahn as managing director of the IMF.
“It’s a very beautiful candidacy,” Noyer said, citing Lagarde’s
“remarkable competence” and the “extraordinary” talent she has
demonstrated in international negotiations.
–Paris Newsroom, +331 4271 5540; stephen@marketnews.com
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