France Lowers Growth Target to 1.5 to 2 Percent

France lowers growth target to 1.5 to 2 percent

PARIS, Aug. 31 (Xinhua) — French Finance Minister Thierry Breton lowed Wednesday the government’s economic growth forecast in 2005 to between 1.5 and 2 percent.

“Our objective is between 1.5 and two percent,” Breton told Europe 1 radio, while the previous target had been 2 percent.

“I said the ceiling was two percent and we are working as hard as we can. It’s true that it’s difficult but we are clearly between 1.5 and two percent,” he said.

He acknowledged that France, along with Europe, were in the reversal cycle since May.

“I say again: the worst is behind us,” Breton said, pointing to increased hiring by businesses and a pickup in economic momentum since the end of May and the start of June,” he said.

“Industrial orders are increasing, exports are much better than they had been … and prospects have clearly been positive since July,” he added.