France’s growth may support budget deficit reduction – Le Maire

France’s economic growth, surpassing expectations, is a potential boost for reducing the country’s budget deficit, said caretaker Finance Minister Bruno Le Maire on Tuesday.

The growth, combined with revised figures from previous quarters, positions France to meet its 2024 forecast of a 1 per cent expansion, even if growth stalls for the rest of the year.

Le Maire, who is preparing the budget for his successor, emphasised that growth is the first pillar of his strategy to cut the deficit, followed by continued economic reforms and reduced government spending.

Despite last year’s larger-than-expected budget deficit and political uncertainty from a hung parliament, Le Maire aims to bring the deficit under 3 per cent of GDP by 2027.

The financial markets are closely watching France’s fiscal situation, with President Emmanuel Macron delaying the appointment of a new prime minister until after the Paris Olympics.

Attribution: Bloomberg