French Finance Minister to slash 2024 growth forecast: Report

France’s growth forecast: French Finance Minister Bruno Le Maire is expected to announce a downward revision of the government's growth forecast for 2024 during an interview on TF1 television on Sunday evening, as reported by French media outlets.

Citing slower growth at the end of 2023 and a subdued outlook for the first half of 2024, the government is anticipated to revise its initial forecast of 1.4 per cent GDP growth downwards. This adjustment is likely to necessitate new cuts in state spending.

Reports suggest varying degrees of reduction in the growth forecast. Online publication La Tribune indicates a cut to around 1 per cent, with Le Maire set to unveil a plan for 20 billion euros in spending reductions over a two-year period. Conversely, Le Figaro suggests a lower forecast of 0.9 per cent and a corresponding savings plan of 10 billion euros.

While the finance ministry declined to comment on the reports, it confirmed Le Maire's appearance on the TF1 news program at 8 pm.

The European Commission recently revised its 2024 GDP growth forecast for France downward to 0.9 per cent, down from the previous estimate of 1.2 per cent in November. Similarly, Germany's growth forecast was adjusted to 0.3 per cent from 0.8 per cent.

Earlier this month, the Organisation for Economic Cooperation and Development (OECD) also reduced its 2024 growth forecast for France to 0.6 per cent, down from the previous projection of 0.8 per cent.

Additionally, France's official statistics agency, INSEE, projected a modest expansion of 0.2 per cent in the first quarter of 2024, following a stagnant performance in the previous quarter, with a similar growth rate expected to persist in the second quarter.

(With Reuters inputs)