France CB Raises Growth Forecast to 1.7%

The head of the Bank of France said on Monday that the country’s economic growth could reach 1.7% for 2017, up from previous estimates and bringing it into line with other, similar official forecasts.

France’s central bank Governor Francois Villeroy de Galhau made the forecast in an interview published on Monday in regional newspaper Midi Libre, in which he highlighted the importance of economic reforms for the country, Reuters reported.

The 1.7% forecast compared to an estimate of 1.6% growth given in July and 1.4% in June. “The economic recovery cannot be doubted. It is happening throughout Europe, including France. However, in our country, growth is not yet strong enough,” said Villeroy de Galhau.

“This year, it could reach 1.7%. That would still put it below the average for the eurozone, which stands at over 2%. This underperformance highlights one imperative—we must take advantage of the recovery to step up reforms in France, so that we can bring up our growth level to that of our European neighbors, who have succeeded in this area,” he added.

The updated forecast from the head of the Bank of France brings it into line with similar estimates on French economic growth for 2017 from the government, while the OECD this month also moved up its forecast for France’s 2017 economic growth to 1.75 from 1.3% previously.

Last week, the International Monetary Fund said President Emmanuel Macron’s success in overhauling the economy would hinge on reining in government spending, the highest among developed countries at over 56% of gross domestic product.