Economics
France Cuts 2023 GDP Growth Forecast to 1%, Citing ‘Tense’ Backdrop
- Weaker GDP forces government to delay tax cuts, plan savings
- Finance Minister Le Maire says deficit goals aren’t negotiable
Emmanuel Macron
Photographer: Valeria Mongelli/BloombergThis article is for subscribers only.
The French government lowered its economic growth forecast for next year, forcing it to delay tax cuts and keep tight control of spending in order to honor President Emmanuel Macron’s promises to reduce the budget deficit.
Disruption to business from volatile energy prices after Russia’s invasion of Ukraine, combined with households facing stronger inflation and difficulties for France’s main trading partners, mean the government now expects GDP to expand only 1% in 2023 instead of the 1.4% it forecast in July.