Friday, November 18, 2016

The government lowers its growth forecast for 2016 to 1.4 % – The World

According to Bercy, this lowering of the forecast does not call into question the goal of reducing the public deficit to 3.3% of GDP this year.

the minister of The éconimie and finance, Michel Sapin, on the 19th of October at the Assembly.

The government has lowered its growth forecast for the French economy in 2016 from 1.5 % to 1.4 %, announced on Friday 18 November, the minister of economy and finance, Michel Sapin, who shall submit in the day of its draft amending budget.

” I think it is 1.4 %. This is the figure that will be remembered for this year as a hypothesis “, said Mr. Sapin on the radio Europe 1, stating that this new forecast would not have a negative effect on the reduction of unemployment. the ” The evidence is that it was never created as many jobs, net new jobs (…) since the crisis “, a-t-he assured.

The entourage of Mr. Tree at Bercy was observed that the reduction of 0.1 percentage point of GDP did not change ” not the dynamic at work for a year and a half, “.

The goal of deficit reduction unchanged

This goal of 1.4% was considered ” feasible “ by the High Council of public finance (HCFP), an independent body responsible for assessing the credibility of the budget estimates of the executive, in a notice to the government made public Friday.

The figure of 1.4 % is however, higher than forecasts of the Insee, the european Commission, the international monetary Fund and the OECD, which are betting on an increase of 1.3 % of GDP in 2016.

According to Bercy, this lowering of the forecast does not call into question the goal of reducing the public deficit to 3.3% of GDP this year. The HCFP has tried the latter ” realistic “, adding that it remained conditioned ” to a strict management of expenditures on end-of-year. The european Commission has estimated that the deficit target of Paris, from 3.3 % this year, is expected to be held.

Read also : public Deficits : for Brussels, Paris can either go under the bar of 3 % of GDP in 2017

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