Growth review up to 1.8%

By Arnaud Campion

The good news continues on the economic front with Insée revising upwards its growth forecast for the hexagon.

Assuming a 0.5% increase in the third and fourth quarters, growth could rise by 1.8% in 2017.

This is a performance unknown since 2011 and the increase is supported by all factors.

The business climate has been improving for a year now and has reached its highest level since 2011, boosting bosses' morale which reflects a marked optimism.

Business and household investment is still boosted by interest rates close to historic lows

Low inflation explains a 1.6% increase in purchasing power, which leads to a 1.1% increase in consumption and savings.

At the same time, the decline in the external deficit would weigh less on growth.

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