French economy grows 1.7% in 2011
Baroin says country is on target for 0.5% growth in 2012 as foreign trade, domestic consumption and investment play role
FRANCE'S economy grew 1.7% last year in line with government forecasts, helped by a stronger than expected rise in business investment.
A 0.2% rise in the fourth quarter was achieved after a 1.4% increase in investment by non-financial businesses and despite a slight brake on household spending, down from 0.3% growth to 0.2%.
The growth in household spending over the full year fell back to +0.3% from the previous +1.3% - contributing just +0.1% to the annual gross domestic product.
Exports grew by 1.2% over the final quarter while imports fell by the same percentage - meaning that foreign trade gave a +0.7% boost to the full-year GDP (up 0.1% from 2010).
Finance Minister François Baroin greeted the news saying the government was on target for 0.5% growth next year as "each of the economy's main components - foreign trade, domestic consumption and industrial investment - had contributed positively" as 2011 closed.
However, the news has to be seen against the background of the highest unemployment in 12 years and a record trade deficit of €70 million. And, with President Sarkozy's demand for France to take Germany as an example, the Germans saw their economy slip 0.2% in the final quarter... to 3.0% growth for the year.
