They said that due to slower growth at the end of 2023 and a weak outlook for the first half of this year, the government would have to lower its full-year 1.4% GDP growth forecast and announce new cuts in state spending.
Online paper La Tribune reported that the 2024 forecast will be cut to around 1% and that Le Maire will announce spending cuts of 20 billion euros over two years.
Le Figaro reported that he will lower the forecast to 0.9% and would announce a 10 billion euro savings plan.
The finance ministry declined to comment on the reports. It said on Saturday that Le Maire would speak on the 8 pm TF1 news.
The European Commission on Feb. 15 cut its 2024 GDP growth forecast for France to 0.9% from the 1.2% seen in November, and it cut its forecast for Germany – the EU’s biggest economy – to 0.3% from 0.8%.
Earlier this month, the Paris-based Organisation for Economic Cooperation and Development cut its 2024 French growth forecast to 0.6% from 0.8% previously.
France’s official statistics agency INSEE on Feb. 7 forecast that the euro zone’s second-biggest economy was set to expand just 0.2% in the first quarter from the previous three months, when it flatlined, and that it would maintain that rate in the second quarter.
Source: Economy - investing.com
