France’s economy grew 1.1 percent last year, its biggest jump in four years, which the government hailed as confirmation of a turnaround after years of economic stagnation, official statistics showed yesterday.
The eurozone’s second-biggest economy posted growth of 0.2 percent in the fourth quarter, down from 0.3 percent in the third quarter, national statistics agency INSEE said.
The full-year growth figure, up from 0.2 percent in 2014, was in line with the government’s predictions, but lagged behind the 1.5 percent growth expected in the wider eurozone last year, INSEE said.
French Minister of Finance Michel Sapin said the fact that output had continued expanding in the fourth quarter, despite devastating jihadist attacks that left 130 people dead in November and dealt a severe blow to tourism, showed “the French did not give up.”
“2015 was the year of the recovery,” Sapin said, predicting that the trend would “intensify in 2016” and spur job creation.
In a sign of increased consumer confidence, consumer spending shot up 1.4 percent last year, while business investment grew 2 percent year-on-year.
France’s 1.1 percent in GDP growth last year compares with 1.7 percent in Germany and 2.2 percent in the UK.
In other news, Jens Weidmann, who heads Germany’s central bank and also sits on the European Central Bank’s (ECB) policy council, on Thursday downplayed the risks for the 19-country euro currency union from an economic slowdown in China and low oil prices.
However, Weidmann cautioned that a long period of excessively low inflation could mean trouble by challenging the credibility of the ECB’s monetary policy.
The mixed remarks come as the ECB prepares to weigh expanding its stimulus measures at its next meeting on March 10. Weidmann is regarded as a stimulus skeptic and made several comments that could argue against more action.
He said in the text of a speech to be delivered in Bonn, Germany, that he saw “no indications of a steep economic collapse in China” that would threaten the eurozone economy, but rather an adjustment of excessive share prices there.
He called cheaper oil “an economic tail wind” for consumers that would help boost growth in the currency union, which is a major oil importer.
Additional reporting by AP
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