Economics

French Government Sees Economy Shrinking 11% This Year

  • Le Maire says no tax hikes on households to cover virus bill
  • Government cuts its 2020 GDP forecast to -11% from -8%
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France will push on with tax-cut plans and broad economic overhauls to help the country rebound from a recession that will be deeper than previously anticipated, Finance Minister Bruno Le Maire said.

The economy will shrink 11% this year, more than the 8% previously predicted. Le Maire said that means France must continue with emergency support and pro-business reforms, and not raise taxes that could choke off growth.