Friday, December 19, 2014

Growth: reasons for hope in 2015, except for employment – Challenges.fr

Growth: reasons for hope in 2015, except for employment – Challenges.fr

The Insee predicted Thursday, December 18 in a monthly report a small growth acceleration French next year, in line with the expectations of the government, but without immediate effect on the unemployment rate .

The National Institute for Statistics and Economic Studies waits after 0.1% growth in gross domestic product in the fourth quarter accelerated to 0.3% in both the first second quarter of 2015, a pace consistent with the government’s projections.

Hollande positive

Francois Hollande held that the growth INSEE estimates released Thursday night were “in line” with those of the government for 2015 (1%), but this growth is not “sufficient” to cause a decline in unemployment.

“We are in line with respect to our growth forecast for 2015, “said the French president during a press conference after an EU summit in Brussels.

” We did the best locations, “said Francois Hollande. First, “the euro area is solid” and “interest rates, even for the peripheral countries that were most at risk, have dropped considerably,” said he observed.

François Hollande, the “second positive situation” is “a very low price of oil” and “of the euro has lost 10% against the dollar in the past six months” with “interest rate for France which are below 0.90% Third positive situation “

.” Juncker the investment plan “€ 315 billion in Europe in the next three years, the 28 endorsed Thursday night, according to the president.

Among the “uncertainties”, he noted, however, the Ukrainian crisis and the Middle East.

An active growing population

INSEE confirmed Thursday the hopes of the government predicting a small acceleration of growth, however, will have no effect on unemployment, and very dependent on the oil price as the value of the euro.

If the Institute made no forecast for the whole of next year, he gave an indication to 0.7% by estimating the “carry-over” at the end of the first half 2015.

“In plain English, this means that we would have almost two-thirds of the way to get 1% growth at the end of 2015,” noted François Hollande who considers that this objective will “probably reached”

“Do 1% growth enough to reduce unemployment in France?”, was further questioned the president. “No, because in France, the workforce is increasing. ” Hence, according to him, the need to be “more competitive” and make “more growth than other medium and long term” with reforms such as Macron law for the growth and activity.

(with AFP)

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