France trims 2019 growth forecast

The French government has revised its growth forecast for 2019 downwards to 1.7 percent from 1.9 percent, Prime Minister Edouard Philippe told the Journal du Dimanche, reports AFP from Paris.

“The growth forecast on which we will build this (2019) budget will be 1.7 percent,” he told the weekly in an interview, while promising to maintain “the pace”.

“When we came up with last year’s budget, we projected 1.7 percent for 2018 and 2019,” he said.

“We were criticised because we were too cautious, and today we’re back to that number. Predictions are important, but what matters is the policy that is being pursued, and we are staying the course and keeping up the pace,” the prime minister added.

On August 1, Budget Minister Gerald Darmanin also trimmed the growth forecast for 2018 from 2.0 percent, estimating that it would be “not less than 1.8 percent”.

The government had lowered its forecast after a slowdown in the first half of the year, with the French economy expanding just 0.2 percent in the first and second quarters, compared with 0.7 percent growth in the last three months of the 2017.

Darmanin, however, had said the target of a 2.3 percent deficit for the current year would not be changed.

But Philippe conceded that “if growth slows, there will inevitably be an impact”.

“But that will not prevent us from being in line with our commitments,” to control public expenditure and debt, he said.

 

France trims 2019 growth forecast

The French government has revised its growth forecast for 2019 downwards to 1.7 percent from 1.9 percent, Prime Minister Edouard Philippe told the Journal du Dimanche, reports AFP from Paris. The growth forecast on which we will build this (2019) budget will be 1.7 percent, he told the weekly in an interview, while promising to maintain the pace. When we came up with last years budget, we projected 1.7 percent for 2018 and 2019, he said. We were criticised because we were too cautious, and today were back to that number. Predictions are important, but what matters is the policy that is being pursued, and we are staying the course and keeping up the pace, the prime minister added. On August 1, Budget Minister Gerald Darmanin also trimmed the growth forecast for 2018 from 2.0 percent, estimating that it would be not less than 1.8 percent. The government had lowered its forecast after a slowdown in the first half of the year, with the French economy expanding just 0.2 percent in the first and second quarters, compared with 0.7 percent growth in the last three months of the 2017. Darmanin, however, had said the target of a 2.3 percent deficit for the current year would not be changed. But Philippe conceded that if growth slows, there will inevitably be an impact. But that will not prevent us from being in line with our commitments, to control public expenditure and debt, he said.