The French economy is set to grow by 2 per cent this year, according to the country's Prime Minister, Mr Jean Pierre Raffarin.

Addressing an Institute of Directors' business breakfast in Dublin's Burlington Hotel yesterday, Mr Raffarin told the audience that growth in France, one of the EU's biggest economies, had dipped in the final months of 2003.

He said that it picked up again in the early part of this year, however, reaching about 8 per cent.

"We now think that we are moving well above 2 per cent," he said. "We have budgeted on the basis of 1.7 per cent this year, but we believe that will be exceeded."

Mr Raffarin, who was replying to a question from the audience, added that external influences, such as the impact of the war in Iraq, still had the potential to affect France's growth prospects. He also pointed out that continued economic success was linked to consumption in France and on structural reforms.

During his speech, Mr Raffarin said that Ireland's continued economic strength was the "envy of many" in Europe, while its growth rate remained well above the European average. He said part of the reason for the State's success was that its businesses focused their efforts on trading in world markets.

"This means that there is a significant share of international trade in your gross national product," he said. "This should be heeded by France's large corporations. We need to bring in that world dimension into our own business model."

He explained that his country had been taking a similar approach to the one adopted by IDA Ireland in trying to attract mobile foreign investment to that country.

Mr Raffarin said that he believed it was important for France and other European countries to assess the Irish model.