France's growth rate is expected tostrengthen in the second half of this year after a poor first
half, but unemployment will worsen, the Organisation for
Economic Cooperation and Development (OECD) said.
    In its semi-annual review of the world economy, the OECD
forecast that growth in the French Gross Domestic Product (GDP)
would run at about two pct in the next six months. It said the
rate would be in line with the 1986 trends, but significantly
higher than in the first half of this year.
    The OECD said France's economic situation has deteriorated
somewhat during the early months of 1987. 
    Activity has slowed, primarily reflecting an inventory
adjustment, while unemployment has risen rapidly and inflation
has reaccelerated, the OECD said. Unemployment is likely to
reach 12 pct of the workforce by the end of 1988.
    The report said inflation should slow and domestic demand
pick up in the second half of this year. But both data are
likely to be worse than those recorded in 1986, it added.
    The OECD forecast a 2.75 pct rise in consumer prices for
the second half of this year, a one pct drop from the first six
months. The slowdown would bring the inflation rate to 3.25 pct
for the whole year, sharply up from last year's 2.2 pct.
 REUTER
