European Economies: French Growth Slowed in Second Quarter
France, the biggest contributor to European growth in 2004, is dragging down the European economy after the effect of government measures to encourage consumer spending, such as a reduction in the inheritance tax, tapered off. The European Commission said yesterday it expects growth in the region to pick up in the second half as the 8 percent decline in the euro against the dollar improves the outlook for exporters. ``It's a very bad figure,'' said Nicolas Bouzou, chief economist at economic research institute Xerfi. ``A growth forecast of 1.5 percent in the year has become almost optimistic.'' The French economy may grow as little as 1.3 percent this year if oil prices remain around $60 a barrel, Michel Devilliers, Insee's chief economist said in an interview Aug. 10. The statistics office on June 23 said it expects the economy to expand 1.5 percent this year after 2.3 percent in 2004.
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