France raises 2017 economic growth to 1.9 pct

PARIS, Dec. 20 (Xinhua) -- In its updated forecast, the French national statistics bureau, Insee, painted a better economic outlook for France, one of Europe's leading power.

In the latest data released on Tuesday, Insee expected favorable business climate and boosted investment to drive up the growth rate to reach six-year high this year.

For the whole year of 2017, French gross domestic product (GDP) would grow by 1.9 percent, one percentage point higher from a previous estimate.

Thanks to positive performance of global markets, the country's economy "is likely to maintain its momentum over the coming quarters" at 0.6 percent by the year-end and 0.5 percent in early 2018.

"The French economy is set to be driven by strong domestic demand, notably corporate investment, despite a slowdown in household purchasing power at the beginning of the year," Insee said.

The new data showed French business leaders were "resolutely optimistic" with the appreciation index reached 111 points on November, the highest level since 2008.

As a result, local companied should increase their output through the mid 2018 by between 0.9 percent and 1.2 percent per quarter. In addition, their investments would expand by 4.4 percent this year before reaching 3.7 percent in the first half of next year.

Household investment, mainly in housing, is expected to jump by 5.2 percent in 2017 from 2.4 percent reported a year before, a strong performance set to offset slowing consumption expected at 1.2 percent compared to 2.1 percent in 2016 mainly on falling spending in energy products.

As for unemployment, Insee predicted the rate at 9.5 percent in 2017, down from 10 percent in 2016, adding that an overall slowdown in employment caused by the decrease in subsidized contracts would limit the decline in jobless claims recorded in the first half of the year.

Looking to next year, the statistics institute said the figure "should fall a little" to 9.4 percent. Enditem