FRENCH INSTITUTE PESSIMISTIC ON 1987 GROWTH

  French gross domestic product will grow
  by only 1.5 pct in real terms this year, compared with the
  government's forecast of two to 2.5 pct growth, the private
  Institut des Previsions Economiques et Financieres pour le
  Developpement des Entreprises (IPECODE) said.
      However, it expects growth to recover next year to the 1986
  level of two pct.
      IPECODE said demand and production would develop in
  parallel this year, in contrast to last year when production
  was unable to keep pace with the strong rise in domestic
  demand, unleashing higher import demand.
      Claims on the International Monetary Fund (IMF) rose by 298
  mln francs to 19.61 billion francs, due to net withdrawals in
  francs by member nations, and an increase in reserves of
  Special Drawing Rights (SDRs) due mainly to the repayment of
  French debts.
      Its deficit with the European Monetary Cooperation Fund
  (FECOM) remained unchanged in February at 33.90 billion francs.
      French household consumption, which rose by 3.1 pct last
  year, is likely to grow by just 1.1 pct this year and 1.5 pct
  in 1988, it added.
      Industrial investment is expected to rise by 4.3 pct this
  year and 5.5 pct in 1988, down from 6.5 pct in 1986.
      Inflation, which was running at 2.1 pct at the end of 1986,
  is likely to rise to 2.9 pct at the end of this year, IPECODE
  said, while the government has forecast 2.5 pct.
      However, the institute said inflation would fall back to
  2.5 pct at the end of 1988, "provided that real wage costs
  remain within the framework of productivity rises."
  

