France Cuts 2023 Growth Outlook to 1%, But Sees Deficit Target Intact

The French government is lowering the country's 2023 economic growth outlook, but sees no need to revise its budget deficit target as a result, Finance Minister Bruno Le Maire said on Tuesday, Reuters reported. Growth in the euro zone's second-biggest economy is now expected to slow from an estimated 2.5% this year to 1% next year, down from 1.4% previously, Le Maire told journalists as he outlined the main forecasts underpinning the 2023 budget bill due later this month. Though slightly bleaker, the French outlook contrasts sharply with the picture emerging from Germany, where two of the main economic institutes forecast last week that Europe's biggest economy would contract next year. "We are keeping a positive growth forecast, but we are adjusting it to (reflect) the reality of the international situation, the energy market tensions and our trade partners' difficulties," Le Maire said. Read more.