France Sticks to Growth, Public Deficit Forecasts

France said Wednesday it was on track for modest growth this year at the same rate as earlier projections and also left its public deficit forecast untouched.

Gross domestic product (GDP) growth in the eurozone's second biggest economy is expected to be 1.5 percent in 2016 and the same next year, the finance ministry said.

That's slightly more optimistic than forecasts by both the European Commission and the International Monetary Fund.

France's public deficit is still expected to be 3.3 percent of GDP this year, dropping to 2.7 percent in 2017, bringing it in line with EU rules that set the limit on public deficits at three percent of an economy's total annual output.

The ministry said however that to reach these targets significant extra savings, both this year and next, would be needed.

Prices in France meanwhile are set to rise less than originally forecast at the start of the year.

Falling oil prices have helped push inflation projections down to 0.1 percent instead of the previously forecast 1.0 percent in 2016, the ministry said.

And France's public debt, which has grown since the 2008 financial crisis and currently stands at nearly 2.1 trillion euros ($2.4 trillion), is set to go on increasing this year and next, but at a slower pace than previously expected.

The ministry said it was on course to stand at 96.2 percent of GDP in 2016.