French growth will rise to 1.2% according to Insee – Le Parisien

June 18, 2015, 10:51 p.m. | Updated: June 18, 2015, 11:33 p.m.

The INSEE estimates that French growth will reach 1.2% 2015 and that unemployment will stabilize at around 10%. Illustration. AFP / Philippe Huguen

These are forecasts that will make you smile in the halls of Bercy and the Elysee. According to INSEE, France will see an acceleration of growth in 2015 to climb to 1.2%. A prognosis that joins the forecast of the Bank of France published in early June and that reinforces the government, which officially table of 1% growth for the year.

In detail, the ‘memo on the economy ” INSEE published Thursday anticipates GDP growth “relatively strong end of 2015″ with 0.3% in the second and third quarter and 0.4% in the fourth. This therefore leads to an annual growth of 1.2%. “By providing a greater than 1% growth this year, INSEE confirms that France is clearly entered a recovery phase of the business,” was immediately congratulated the Finance Minister Michel Sapin.

Stabilization of unemployment, no inversion of the curve

Furthermore, Insee expects the French economy took a growth rate of 1.6% year on year end of 2015, “sufficient growth to start training as employment and stabilize unemployment,” according to Vladimir Passeron, head of the economy department. Because according to the institute, the unemployment rate should continue to rise slightly in 2015 to 10.1% in France in the second quarter.

It will then stabilize until the end of the year thanks to an expected increase in job creation (+ 60 000), which would absorb most of the increase in the labor force (+ 63000). However, INSEE does not foresee for the time mild reversal of the unemployment curve announced by the OECD and UNEDIC for the second part of the year.