France Cuts Growth Estimates and Deficit Forecasts

France will cut its public deficit slightly more than planned this year and next and bring it under the EU’s cap of 3 percent of GDP in 2017 as expected, government officials said on Wednesday.

While it hopes to do better thanks to a weak euro and oil prices as well as low debt interest rates, the government stuck to its 1 percent growth forecast for this year and trimmed it slightly to 1.5 percent for 2016 and 1.5 percent in 2017.

The government had said last month that it hoped to bring its budget deficit to around 3.8 percent of economic output in 2015, down from its previous 4.1 percent estimate.