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French Central Bank Uplifts Q4 Economic Prevision

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France's gross domestic product was expected to grow 0.6 percent in the fourth quarter, slightly higher than previous forecast, the French central bank said Tuesday.

The bank had earlier forecast that France's GDP would rise by 0.5 percent in the last quarter of 2009 because the economy gained 0.3 percent in both the second and third quarters.

Finance Minister Christine Lagarde expressed optimism in mid-November, saying France was gearing up for the "turning point of recovery."

Speaking on Radio Classique Tuesday, Lagarde said growth in the fourth quarter would be better than the 0.3-percent increase, marking "a mild exit from the crisis" for France.

The national bank noted that industrial activity has been accelerating since November due to a good performance in automobile sectors and an increase in consumption.

France's economy was expected to contract by 2.25 to 2.5 percent this year as a whole, and would see mild growth of 0.7 percent in 2010, said an early financial outlook from the government.

Prime Minister Francois Fillon said, however, that the country's economy has the potential to grow 1.5 percent in 2010.

(Xinhua News Agency December 9, 2009)