French government says deficit will be hit by sluggish economy

City A.M. Reporter
THE FRENCH government cut its forecast for growth next year to just 0.9 per cent yesterday and said its public deficit would fall more slowly than previously expected as a result.

In April it had predicted growth of 1.2 per cent for next year.

Presenting headline figures for the 2014 budget yesterday, finance minister Pierre Moscovici said the government now targets a deficit of 4.1 per cent of national output this year, up from an earlier forecast of 3.7 per cent; and 3.6 per cent next year, up from 2.9 per cent. The growth forecast for 2013 remains a feeble 0.1 per cent as the Eurozone’s second-largest economy recovers from six months of recession that began last year.