French Finance Minister Bruno Le Maire said he will revise the government’s official growth forecast in the coming days as the outlook for European countries worsens, according to Bloomberg.
“In Europe, we have a growth rate that is well below the US and all the European states are revising their growth forecasts,” Le Maire said. “I will also do that in the coming days.”
The government’s 2024 budget is currently based on a 1.4% rise in gross domestic product this year, but international institutions have cut their forecasts well below that level in recent weeks. Earlier Thursday, the European Commission said it expects only 0.9% growth in France this year.
Weaker output would require the government to make further savings if it is to stay on track with plans to contain the budget deficit. It is also counting on stronger expansion to support a labor market that began to weaken last year.
Speaking at a press conference on plans for a law to boost growth by cutting bureaucracy, Le Maire said Europe also faces fundamental economic challenges beyond the current headwinds from inflation and higher borrowing costs.
“Europe has a structural problem with growth, with a lack of productivity that creates fewer jobs and fewer opportunities for European citizens,” Le Maire said.