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Minister warns on economy
France faces minimal growth and possibly a fall in activity – but 2014 will be better
ECONOMY Minister Pierre Moscovici says the French economy is scraping along the bottom this year, with minimal growth and possibly a slight fall in activity.
Last month President Hollande forecast improved economic conditions in his July 14 TV interview but Mr Moscovici said: "We know the trends and this year growth will be weak and between -0.1% and 0.1%.”
But, he added, "What is important is that the trend has reversed.”
Speaking to Nice Matin newspaper, he said that next year would be better: "I have every reason to believe that 2014 will be the first year of real growth for three years."
Later, on RTL, he said that the government would issue official forecasts next month but France was out of the recession and the country was starting to see a return of growth.
Mr Moscovici said the government was acting to reduce the deficit without stifling growth and was doing this by reducing public spending “then by a limited increase in the tax burden of 0.3%, in line with social justice".