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France Leaves Budget Effort for Later With Growth Narrowing Deficit

  • Growth forecast raised, budget deficit to narrow faster
  • Macron facing backlash against reforms from railworkers

Photographer: Christophe Morin/Bloomberg

Updated on

France raised its growth outlook and forecast the budget deficit will narrow more quickly through 2022 as the economic recovery buoys public finances.

Gross domestic product will expand by 2 percent this year and 1.9 percent in 2019, more than the September projection of 1.7 percent for both years, the finance ministry said Tuesday. The budget deficit will shrink to 2.3 percent this year compared with a previous projection of 2.6 percent. The so-called structural deficit -- which adjusts for the impact of the economic cycle -- will be 1.9 percent instead of 2.1 percent this year.