France: oil price increases keep growth below expectations; demand for US products should remain strong
The French economy is not growing as fast as was expected earlier. The higher import bill, due largely to OPEC oil price increases, will deplete most of the current account surplus achieved last year and accelerate inflation. France's rapid productivity growth and relatively numerous entrants into the labor force require a growth rate higher than it is expected to achieve to reduce unemployment. The full effects of the oil price increases on the French economy will be felt in 1980 with the likelihood of lower growth, increasing unemployment, higher inflation, and rising trade deficits. Many US exports, especially high-technology products, fill structural gaps in French industrial capabilities while other exports respond to strong consumer demand. (SAC)
- OSTI ID:
- 5444938
- Journal Information:
- Bus. Am.; (United States), Vol. 3:1
- Country of Publication:
- United States
- Language:
- English
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