The central bank of France forecasts an increase by 1.6 percent annually to 2020 amid the steady fall of unemployment, as announced on Friday, with a slight decline from the previous growth outlook.
The previously expected figure for 2018 is 1.8 percent and the year after to be 1.7 percent. However, the central bank said that the first six months of the year is weaker than expected and the foreign demand to be weaker than the previous forecast for next year.
It seems that the central bank outlook is more negative than the government as the basis for this year’s budget with the assumption of 1.7 percent in 2018 and the next.
At the same time, the perspective which is likely to affect the economy after the European central bank forecast on Thursday with the expected growth of 2.0 percent, 1.8 percent and 1.7 percent for 2018, 2019 and 2020, respectively.
The unemployment rate has reached a record low since 2008 and gradually declines from 9.1 percent in April quarter to 8.3 percent by the end of 2020 amid the global financial crisis.
Meanwhile, the consumer spending is anticipated to grow in the few years to come which will optimistically offset the weakened business investment amid the positive momentum of households’ purchasing power and decline of unemployment.
The inflation is presumed to rise this year at 2.1 percent whilst energy prices rises which can then return to 1.7 percent next year and 1.8 percent the year after that.
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