PARIS--Bank of France Governor Christian Noyer Wednesday said he expects a gradual economic recovery in France over the second half of this year and next year, so long as the government sticks to its deficit-reduction policy.
In an interview with local radio Europe1, Noyer, who is a member of the European Central Bank's governing council, said growth in French gross domestic product in 2013 may reach 1% if the government sticks to a "clear strategy to reach budget deficit targets of 4.5% (of GDP) this year and 3% (of GDP) next year."
Low budget deficits will allow the government to keep financing itself at low interest rates and will reassure companies and families, encouraging them to invest and spend, Noyer said.
The French government expects a 0.3% growth this year and 1.2% in 2013. Noyer attributed the slowdown of the French economy in the first quarter of this year to the uncertainty related to the May presidential elections.
He added the government must tackle labor costs to boost French companies' competitiveness.
Asked about the Libor-fixing scandal, Noyer said the ECB had no information about possible fraud.
He said criminal acts related to the scandal must be punished and those responsible must be convicted.
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In an interview with local radio Europe1, Noyer, who is a member of the European Central Bank's governing council, said growth in French gross domestic product in 2013 may reach 1% if the government sticks to a "clear strategy to reach budget deficit targets of 4.5% (of GDP) this year and 3% (of GDP) next year."
Low budget deficits will allow the government to keep financing itself at low interest rates and will reassure companies and families, encouraging them to invest and spend, Noyer said.
The French government expects a 0.3% growth this year and 1.2% in 2013. Noyer attributed the slowdown of the French economy in the first quarter of this year to the uncertainty related to the May presidential elections.
He added the government must tackle labor costs to boost French companies' competitiveness.
Asked about the Libor-fixing scandal, Noyer said the ECB had no information about possible fraud.
He said criminal acts related to the scandal must be punished and those responsible must be convicted.
nasdaq.com
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