French central bank trims 2018, 2019 growth outlook to 1.5 pct
In a quarterly update of its economic forecasts, the Bank of France projected the economy would grow 1.5 percent in 2018 and 2019, down from 1.6 percent for both years in previous estimates.
The forecasts do not include 10 billion euros ($11.36 billion) in tax cuts brought forward to next year and extra spending announced this week by President Emmanuel Macron in a major concession to protestors.
Central bank governor Francois Villeroy de Galhau said that though the protests were weighing on year-end activity, a rebound could be expected early next year.
Macron announced the concessions this week to quell a month-long popular revolt that started out over fuel tax hikes - since cancelled - but has morphed to target the high cost of living as well.
The yellow vest movement, named after the high-vis jackets French motorists must keep in their cars, has triggered the most violent street protests seen in decades.
The central bank has already forecast the protests would knock fourth quarter growth down to 0.2 percent from 0.4 percent in a previous estimate.
"Overall the more the movement lasts, the bigger the loss for the French economy," Villeroy told French business newspaper Les Echos.
Villeroy said that growth would be supported next year by a pick up in consumer spending, boosted by a 1.3 percent increase in household's disposable income even without taking into account Macron's latest measures to lift purchasing power.
Consumers fed up with the high cost of living could also expect some relief from lower inflation, which the central bank forecast would ease to 1.6 percent on average next year from a peak of 2.6 percent in mid 2018.
($1 = 0.8807 euros)
(Reporting by Leigh Thomas; Editing by Toby Chopra)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
- READ MORE ON:
- ten percent plan
- atmosphere
- government of australia
- french verbs
- french quarter
- french press
- central florida
- comedy central
- central heating
- bank
- central bank
- bank of ireland
- next plc
- younger next year
- usen next holdings co ltd
- protest
- student protest
- protests against donald trump
- european centre for medium-range weather forecasts
- exponential growth
ALSO READ
UDF candidate protests demanding first token to file nomination
"We are very upset": Newly settled Bru migrants respond to protests by locals in Tripura
Argentina's Milei takes his chainsaw to the state, cutting 15,000 jobs and spurring protests
Canada wants full probe into killing of aid workers in Gaza, protests to Israel envoy
Cuba guarantees food rations in bid to defuse tension after protests