Dizano News – Finance Minister Pierre Moscovici on Saturday said France’s economy may shrink 0.1% this year, after predicting 0.1% growth earlier this year.
Mr Moscovici said 2014 “will be the first year of real growth for three years”
But he predicts a rebound of 0.3% growth in 2014.
The International Monetary Fund in June called on France to lower its labour costs and halt tax hikes to boost both growth and its competitiveness.
The IMF predicts France’s GDP will fall 0.2% this year.
“After two quarters of negative growth… the second and third quarters of 2013 will experience positive growth,” Mr Moscovici said. “What is important is that the trend has reversed.”
“I have every reason to believe that 2014 will be the first year of real growth for three years.”
He told a French newspaper that France needs to reduce its deficit “but at a pace that does not upset growth”.
“First, in line with International Monetary Fund recommendations, we will reduce public spending, then by a limited increase in the tax burden of 0.3%, in line with social justice.”
In June, the European Commission, gave France two years to trim its budget deficit from 3.7% of gross domestic product at the end of 2012 to 3%.
Unemployment in France, the eurozone’s second-largest economy after Germany, currently stands at 11%.
Source BBC
Source: France sees negative 2013 growth
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