France: Slow recovery of economic activity and a rapidly increasing deficit

The upswing in the economy weakened continuously in the course of 2002, with stagnation in the last quarter. The real gross domestic product (GDP) expanded by around 1.2% for the year; the unemployment rate increased to 8.7%. Consumer prices increased by 1.9%. In 2003 real GDP will grow by around ¾%, the unemployment rate will increase to 9½%, and prices will be approximately 2% above the level of 2002. In 2004 real GDP could increase by around 2%, the unemployment rate will probably remain at the level of the previous year, and consumer prices might increase by around 1¾%.