The French are cautiously optimistic.

Before it became obvious during the summer of 2007 that the liquidity crisis was going global, and that the crisis would have a negative effect on the global economy, the world economy was doing well, "growing briskly," in fact. So observes France's National Institute for Statistics and Economic Studies (INSEE) in an October 28, 2007 analysis of the country's economic progress well into the fourth quarter, 2007. INSEE says that it is not easy to forecast with any certainty what will happen to the world economy. Doubts prevail. Uncertainties persist.

"These doubts affect the macroeconomic landscape: They generate a lack of visibility on banks' future credit-distribution behavior, on the functioning of markets that are now short of lenders, and hence on the ability of consumers and businesses to finance their projects," says INSEE. Overall, the statistics agency is cautiously optimistic.

"However, assuming the financial difficulties are gradually resolved--thanks, in particular, to central-bank actions--the effects should remain moderate between now and end-2007."

INSEE is relatively confident that French growth in the third quarter 2007 will come in a 0.7 percent. The final quarter gain will be more modest--0.5 percent. That would mean the French economy will post an expansion of 1.7 percent for 2007.