There are some signs that activity will pick up this year, but the recovery is expected to remain fragile.
Consumer demand remains limited by the high level of unemployment.
Low interest rates are expected to encourage a reduction in the level of savings which should give some momentum to consumer demand this year. Industrial production increased somewhat towards the end of last year and the assessment for 1997 has become more upbeat. The expected cyclical upswing in Europe along with some improvement in domestic orders, are expected to be the main factors driving an improvement in industrial output. An increase in export demand is also expected to boost growth. French interest rates are at historically low levels and very close to German rates.