France: it will “probably be difficult to meet” the objective of a public deficit of 4.9% of GDP in 2023

Europe 1 with AFP 11:34 a.m., February 19, 2024

The French government's stated objective of reaching a public deficit of 4.9% of gross domestic product (GDP) in 2023 will be "probably difficult" to meet, a source at the Ministry of the Economy said on Monday. “Regarding the 2023 deficit, the reality is that our revenues were much less dynamic than expected at the end of the year and that it will probably be difficult to maintain the 4.9% in 2023,” said this source. .

At the end of October, the government indicated that this deficit would fall below 5%, after having been anticipated at 5% in the initial finance bill. The government, however, maintained on Monday its forecast of a deficit of 4.4% of GDP for 2024, which it intends to achieve by committing 10 billion euros in additional savings. The medium-term objective is to bring the public deficit below 3% of GDP in 2027.

Growth revision taking into account “the new geopolitical context”

“Less revenue should lead us to less spending to meet our objective of a 4.4% deficit in 2024,” said the Minister of the Economy and Finance Bruno Le Maire on Monday during an exchange with the press. The day before, the leader had announced a reduction in the French growth forecast for 2024, to 1%, and announced 10 billion euros in savings relating in particular to the current expenditure of ministries, to development aid and on the “MaPrimeRénov’” thermal renovation support system.

This growth forecast "takes into account the new geopolitical context", explained the Minister of the Economy on the TF1 television channel, referring to the war in Ukraine, the Middle East, the "very marked economic slowdown in China" and " a recession in 2023 in Germany.