According to Junior Minister Astrid Panosyan-Bouvet, the French government is getting ready to adjust its growth forecast for this year, lowering it to around 0.7%, aligning with the Bank of France's projection. The current prediction stands at 0.9%, serving as the foundation for France's yearly finance budget. Economy Minister Éric Lombard indicated that a downward revision would be forthcoming due to the delicate economic situation, highlighted by looming uncertainties. The Bank of France had already reduced its growth outlook earlier from 0.9% to 0.7%, contrasting with the 1.1% growth rate recorded in 2024, with expectations of 1.2% in 2026 and 1.3% in 2027.
The adjustment reflects concerns over the uncertain trade landscape influenced by potential tariffs from the Trump administration. There have been talks of tariffs on EU goods, which could impact France, given its significant trade relationship with the US. The country faces economic challenges due to high borrowing costs, a substantial deficit equating to 5.8% of GDP in 2024, exceeding the eurozone's 3% target. To tackle this issue, previous attempts to implement fiscal measures by Prime Minister Michel Barnier were unsuccessful, resulting in a collapse of the government. However, Prime Minister François Bayrou managed to pass an annual budget in February, addressing the deficit concerns.