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French '99 GDP up 2.7pc

PARIS: France's economy grew 2.7 percent in 1999 and early indications showed that while consumer spending was robust in January industrial output looked set to level off after strong gains at the end of last year.

French national statistics institute INSEE said on Friday that gross domestic product (GDP) growth came in at 0.9 percent in the fourth quarter of 1999, bringing full-year growth to 2.7 percent against 3.4 percent in 1998.

The data showed imports rising 2.9 percent in the fourth quarter against 2.3 percent in the prior quarter and export growth slowing to 0.5 percent in the last quarter of 1999 after a 4.4 percent jump in the third quarter.

INSEE also reported that consumer spending rose 1.4 percent month-on-month in January from a revised 0.2 percent rise in December.

The institute's personal business outlook index for February showed a reading of 16 against 20 in January, while its general outlook index slipped to 33 against 37 in the prior month.

The figures underscored the strength of the French economy when compared with other European heavyweights Germany and Italy and economists said the figures pointed to strong gross domestic product growth in 2000, supported by strong consumer demand.

"Regarding the industry survey, there is consolidation, as expected," said Emmanuel Ferry, economist at Exane.

"Industrial output has reached a plateau due to the fast pace at which it took off, but the survey is still close to the historical highs of 1995 and 1998 and order books remain very positive, notably foreign orders.-Reuters