French economy set to grow 2.1 percent this year: official figures The French economy should expand by 2.1 pct this year, thanks to a rebound in the fourth quarter, and appears likely to resist a slowdown in global momentum expected in early 2007, the national statistics institute INSEE said. INSEE economist Eric said the stagnation in the French economy in the third quarter was a surprise and should be corrected by growth of 0.9 pct in the final three months of the year, powered by a pickup in the manufacturing industry. INSEE in early October predicted French growth in 2006 of 2.3 pct while Finance Minister Thierry Breton has spoken of an expansion of between 2.0 and 2.5 pct. In its twice-yearly forecast late last month the Organisation for Economic Cooperation and Development forecast growth in France this year of 2.1 pct. With a continuing slowdown in the US, global economic activity is likely to decelerate in the first three months of 2007, according to INSEE. But Dubois said a resulting decline in French export earnings should be offset by robust domestic demand as housholds take advantage of lower income taxes next year and a weakening in crude oil prices. The jobless rate is expected to decline to 8.6 pct of the workforce by the end of 2006 and to 8.2 pct at the end of June next year.