PARIS: The French government Tuesday cut its budget deficit forecasts for this year and next after taking austerity measures over the summer and as economic growth is stronger than initially expected.
The finance ministry said it targets a deficit of 2.9% of economic output this year and 2.6% in 2018, instead of 3% and 2.7% it forecast shortly after President Emmanuel Macron took office in May. After an improvement in economic growth over the past three quarters, the government also revised up its gross domestic product forecast to 1.7% this year from 1.6%. The economy will grow 1.7% again in 2018, the government said.
