French economy grew by meagre 0.4 per cent last year
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[PARIS] France's economy expanded by a mere 0.4 per cent last year as investment slumped, official data showed Friday, but the finance minister said growth should pick up this year.
Total investment fell by 1.6 per cent in 2014, a higher drop than the previous year, drawing concern for the eurozone's second largest economy.
Finance Minister Michel Sapin said the lacklustre growth was in line with expectations.
"It's obviously still too weak but conditions are met to allow a more definite upturn in activity in 2015," he told reporters.
The government has so far been unable to kickstart much-needed growth in a country beset by record unemployment.
President Francois Hollande has launched a two-pronged attack to tackle joblessness and push for growth.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The first is known as the Responsibility Pact, a series of tax cuts for businesses in return for job creation.
The second is a package of reforms aimed at opening up France's closed economy, including extending the number of Sundays per year when stores can open their doors.
Most economists believe that France needs a growth rate of around 1.5 per cent to create jobs.
Mr Sapin disputed this, saying just one percent growth - the target for 2015 - is needed.
AFP
Share with us your feedback on BT's products and services
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Aiming at China, Malaysia puts new restrictions on electric cars
Singapore tightens monetary policy for first time since 2022, raises inflation forecasts amid Iran war oil shock
Mustafa Centre begins fit-out at JB’s Capital City Mall after 2-year delay
