France aims for 2.7 pct deficit

18th March 2005, Comments 0 comments

PARIS, March 17 (AFP) - The French finance ministry said Thursday it expected the French economy to grow by 2.25-2.75 percent in 2006, picking up from growth seen at 2.0-2.5 percent this year.

PARIS, March 17 (AFP) - The French finance ministry said Thursday it expected the French economy to grow by 2.25-2.75 percent in 2006, picking up from growth seen at 2.0-2.5 percent this year.

Following its regular review of the country's financial and economic outlook, the ministry also said France's public deficit should fall to 2.7 percent of gross domestic product next year.

By the end of this year, the government has forecast the public deficit will have fallen to 2.9 percent of GDP, under the 3.0 percent limit imposed by the eurozone's Stability and Growth Pact.

France has repeatedly breached the European Union's stability pact's 3.0 percent deficit limit, which official data puts at 3.7 percent last year after 4.2 percent in 2003.

Thursday's 2006 deficit forecast of 2.7 percent of GDP was sharply higher than the 2.2 percent forecast on December 1 and followed a downward revision of the 2005 growth forecast.

Finance Minister Thierry Breton on Wednesday cut this year's GDP growth forecast to 2.0-2.5 percent, from 2.5 percent previously.

© AFP

Subject: French News

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