French Minister of Economy Christine Lagarde stated that she expects 2009 to end on a better economic note than it will begin, emphasizing that France will keep its budget deficit in 2008 below the maximum allowable level for EU countries of under three percent.
The French government announced on September 1 that it will lower its official growth forecasts for 2008 when presenting the budget for 2009, which is scheduled for this month."I believe we will conclude 2009 better than we will start it," Lagarde said in an interview with the French TV station LCI."We will finish this year with relatively weak third and fourth quarters, and the first two quarters of 2009 will mark a new beginning," she added, stressing that it is too early to provide precise growth forecasts for the next year.
At a business conference in Italy, Lagarde said on Sunday that the French government is revising its targeted budget deficit level for this year and next year. When asked whether the French budget deficit in 2008 would reach the 3 percent upper limit of GDP, she stated that the deficit would certainly be lower. "This is our commitment to our European partners," she highlighted. Recent economic data indicated a trend of weakening in the French economy, raising doubts about the possibility of France achieving its targeted 2.5 percent budget deficit in 2008 and 2.0 percent in 2009, aiming to balance it by 2012. (H)
