France is to trim its growth forecast for 2014 from 1.2 percent to 0.9 percent and hike its budget deficit projections for this year and next, reflecting a slower-than-hoped recovery, Les Echos newspaper reported on Wednesday.
The government now targets a public deficit of 4.1 percent of output this year, up from an earlier forecast of 3.7 percent, and 3.6 percent next year, up from an initially projected 2.9 percent, the business daily said on its website of official 2014 budget projections due to be unveiled later.
The widely expected new forecasts, revised from April, put the government’s projections more in line with those of the European Commission and the bulk of independent economists. France will thus be taking advantage of an extra two years given by the EU to rein in its deficit to below 3 percent of output in return for commitments to economic reforms.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.