France’s central bank raises growth forecast

A French flag covers a plaque before its unveiling during the inauguration of a Gendarmerie in La Londe-les-Maures, Southern France, May 19, 2011. REUTERS/Philippe Wojazer (FRANCE - Tags: POLITICS)

A French flag covers a plaque before its unveiling during the inauguration of a Gendarmerie in La Londe-les-Maures, Southern France, May 19, 2011. REUTERS/Philippe Wojazer (FRANCE - Tags: POLITICS)

Published Dec 9, 2013

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Paris - France should post economic growth of 0.5 percent in the last quarter of this year, the central bank said Monday, citing a “clear” rise in manufacturing and deliveries in most sectors.

The Bank of France had initially predicted 0.4 percent growth during this period.

The review is a shot in the arm for the euro zone's second economy which emerged from recession in the second quarter with higher than expected growth of 0.5 percent.

The Bank said there had also been a “slight increase” in November in the performance of the services sector, citing IT and transport.

“The costs of finished products remain stable,” it said, adding that the heads of companies “forecast stable activity in the coming weeks.” - Sapa-AFP

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