INSEE Lowers French 2008 Growth Forecast

The French economy will expand by 1.6 percent this year, the slowest pace in five years, as rising prices damp consumer spending and the housing market slumps, the government statistics office said today. The economy is now expected to grow by 0.2percent in the second quarter, the slowest pace in almost two years and a third of the pace in the first three months, Insee said in its quarterly report. The economy may well stagnate in the third quarter and grow 0.2 percent in the final three months, Insee said.