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Bloomberg
The French government boosted its budget-deficit forecast, amid global economic headwinds and a drag on finances from President Emmanuel Macron’s stimulus in response to the Yellow Vest protests.
The finance ministry cut the 2020 growth forecast to 1.3 percent from 1.4 percent previously and raised its budget deficit target to 2.2 percent of economic output from the 2.1 percent aim it set in June. The full details of next year’s budget will be published at the end of September.
The gloomier economic and financial outlook for the euro area’s second-largest economy is the latest sign of global trade difficulties permeating the currency bloc. Still, France is seeing less of an impact than Germany, which is more exposed to export markets and has warned of a gloomier growth outlook.