The French Ministry of Finance announced its forecast for the public deficit in 2017 at 2.8% of the gross domestic product (GDP), compared to the previously announced 2.7%. As for growth, the ministry is forecasting 1.5% in 2017.
This “stability program” will be submitted to the European Commission.
The deficit will drop below 3% of GDP, allowing France to exit the excessive deficit procedure it has been in since 2009.
Regarding 2018 and 2019, the government has also raised its public deficit forecasts to 2.3% of GDP (compared to the previously anticipated 1.9%) and 1.6% (compared to 1.2%), respectively. By 2020, it anticipates a gradual reduction of the deficit to 1.3% of GDP.
However, Bercy has revised its growth forecasts downward to 1.5% in 2018 from the previously anticipated 1.75%, and to 1.6% in 2019, compared to the previously announced 1.9%.
For 2020, the ministry anticipates a 1.7% increase in the gross domestic product. The debt forecast remains unchanged at 96% of GDP in 2017.
