PARIS - France's economy should expand by 1.4 per cent this year, largely on growth in the services sector, after shrinking 2.5 per cent last year, the French national statistics agency says.
The Insee agency warned in its report Wednesday night that the recovery could stumble "if the current tensions on the financial markets are brutally amplified."
Gross domestic product rose 0.1 per cent in the first quarter and Insee forecast growth in the second quarter of 0.5 per cent, and 0.4 per cent in both the third and fourth quarters.
The services sector is expected to lead the growth, Insee said, while manufacturing is expected to stagnate at well below pre-crisis levels.
The fall in the euro should help exporters, Insee said, predicting export growth of 8.6 per cent.
Insee also forecast a steady unemployment rate of 9.9 per cent this year, after years of falling joblessness rates.
