The French government is sticking by its forecast of 2.25 per cent growth in 2007, despite a sharp slowdown in the second quarter and this summer's financial market turbulence.

Many private sector economists, as well as the European Commission and OECD, do not share the government's confidence. And while Christian Noyer, the governor of the Bank of France, said last week he was "rather optimistic" about growth in France, he added there was increasing uncertainty about the effect of the credit squeeze.