According to reports, it was revealed that the Organization for Economic Cooperation and Development has revised its forecast regarding the French economic growth along with the government.
OECD has expected that the French economy would rise by 1.6% this year. This news has been published in the Economic survey of France on Monday.
“There is a risk that a prolonged period of easy finance could result in a price bubble,” the Paris-based OECD said in a report released today. “If real-estate prices were to continue to rise rapidly, the authorities should implement explicit macro-prudential measures to limit the distribution of credit to households,” it added.
During the release, OECD Secretary General, Angel Gurria revealed that French economy will grow 2% more than the last year. A strong economic growth has been seen in the first quarter of the year, which has increased the expectation from this year.
French Finance Minister, Christine Lagarde welcomed this change and also expressed happiness towards the new target.
However, Lagarde did not want to reveal the economic scenario of 2012. But she claimed that the French economy needs a 2.5% growth rate as soon as possible.
She also claimed regarding the government’s target to bring down the deficit to 3% from 5.7% as expected this year.