France Should Avoid More 2013 Cuts as Growth Sags, IMF Says
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The French government’s deficit-reduction policies are hurting growth and it shouldn’t make further cuts even though it’s unlikely to hit 2013 European targets, the International Monetary Fund said.
In its annual review of France, the IMF last week forecast that the economy will grow 0.4 percent next year, half the government’s outlook, and as a result the Washington-based IMF sees France unable to meet a deficit target of 3 percent of gross domestic product next year. The IMF expects a shortfall of 3.5 percent and says the difference isn’t important.