France says economy may have grown by 2% in 2017

(MENAFN- AFP)The French economy may have grown by nearly two percent last year, faster than the government's official forecast, French Finance Minister Bruno Le Maire said on Monday.

"Growth is solid. It could be approaching two percent in 2017, a first since 2011," Le Maire said told business leaders.

In 2018, too, "we should do better than our forecast," he said.

The government's official forecast for gross domestic product (GDP) growth is 1.7 percent for both 2017 and 2018. But given buoyant consumer and business sentiment, the final figure for 2017 looks likely to exceed that.

Last week, the Bank of France upgraded its prognosis for growth in 2017 to 1.9 percent, on the back of the strong economic performance in the fourth quarter. The INSEE national statistics office did the same in December.

"Business morale is at its highest level in 10 years. Investment is picking up again," Le Maire said.

"More than 250,000 jobs were created in the retail sector," the minister said.

Nonetheless, Le Maire warned against becoming over-optimistic.

"Clarity demands that we recognise that daily life remains difficult for millions of French people, who are facing unemployment and poverty," he said.

Le Maire said he was committed to "accelerating the economic transformation of France."

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