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.
City A.M. Reporter