France has revised its GDP growth forecast for the current year, downgrading it from 1.4% to 1%, alongside announcing a significant reduction in spending amounting to approximately €10 billion, according to statements made by the country’s finance minister.
In an interview on French channel TF1, Finance Minister Bruno Le Maire disclosed plans to implement immediate cuts to ministry budgets and select governmental initiatives to counteract the subdued growth projections. These measures aim to uphold the nation’s target of reducing its deficit to 4.4% by 2024 without resorting to tax hikes, following a deficit of 4.9% in 2023.
Attributing the revision to the prevailing geopolitical climate, Le Maire underscored events such as Russia’s conflict in Ukraine, tensions in the Middle East, and economic challenges both within Europe and globally.
Despite the economic adjustment, France remains committed to providing aid to Ukraine and supporting its domestic agricultural sector. Le Maire indicated the possibility of announcing further budget revisions if necessary.
The revised economic outlook may dampen the optimism of President Emmanuel Macron, whose focus on pro-business initiatives had been central to his economic strategy, contrasting with austerity measures.
