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France lifts 2021 deficit, debt forecasts

Published 04/04/2021, 07:33 AM
Updated 04/04/2021, 07:35 AM
© Reuters. FILE PHOTO: French Economy and Finance Minister Bruno Le Maire speaks during a press conference in Paris

© Reuters. FILE PHOTO: French Economy and Finance Minister Bruno Le Maire speaks during a press conference in Paris

PARIS (Reuters) - France's public deficit is expected to reach 9% of gross domestic product (GDP) in 2021, French Finance Minister Bruno Le Maire said on Sunday, up from a previous forecast of 8.5% as the country enters its third national coronavirus lockdown.

The change follows a downward revision of France's growth forecast from 6% to 5% for this year, taking into account the effect of new restrictions throughout April brought in to tackle the COVID-19 pandemic. Schools are set to shut and non-essential shops have closed.

Le Maire, speaking on LCI TV, said France's public debt was set to reach 118% of GDP this year, up from its latest forecast of 115%. In yet another estimate before that, Le Maire had said in December public debt could reach 122% of GDP.

Like many countries in Europe, France has ploughed billions of euros into propping up struggling companies with state-backed loans as well as helping them with rents and partial unemployment schemes.

© Reuters. FILE PHOTO: French Economy and Finance Minister Bruno Le Maire speaks during a press conference in Paris

President Emmanuel Macron had hoped to steer France out of the pandemic without having to impose another broad shutdown, sparing the economy a further blow, but COVID-19 cases and hospitalisations have surged in recent weeks.

Latest comments

Communist devil with a white backgroung for a better lies...
youre quite insane hmmm
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