French Economic Outlook: Revised Growth and Deficit Targets

French Prime Minister Francois Bayrou announced a revised economic forecast, cutting 2025 growth projection to 0.9% and setting a public deficit target of 5.4% of GDP. He reaffirmed the goal to reduce the public deficit to 3% by 2029, indicating the government's long-term fiscal strategy.

In an address to the parliament on Tuesday, French Prime Minister Francois Bayrou revealed adjustments to the nation's economic forecast for 2025, reducing the growth estimate from 1.1% to 0.9%.

Bayrou further emphasized a focus on fiscal responsibility by targeting a 5.4% public deficit of GDP for 2025.

Despite the current adjustments, the government remains committed to achieving a 3% public deficit by 2029, underscoring its strategic approach to economic stability.

(With inputs from agencies.)