France cut budget deficit projection for 2010

09:42, April 09, 2010      

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The Economic Ministry announced Thursday a lower budget deficit for 2010 at 8.0 percent of gross domestic product, down from the previous projection of 8.2 percent of GDP.

The slightly smaller forecast was based on more dynamic government revenues, especially at the end of 2009, the ministry said.

France's budget deficit reached 144.8 billion euros (194.7 billion U.S. dollars) in 2009, or 7.5 percent of GDP, the national statistics bureau INSEE said last week.

Though the 2009 final reading was better than the previously forecast 7.9 percent,it still hit a historical high and was well above the European Union's safety limit of 3 percent for GDP deficits.

President Nicolas Sarkozy in January urged an ambitious cut to the increasing deficit, vowing to bring the figure back to meet EU stability regulations by 2013.

Pier Carlo Padoan, chief economist of the Paris-based Organization of Cooperation and Development expressed optimism over France's recovery based on an estiamted growth of 2.3 percent in the first quarter and 1.7 percent in the second.

However, Padoan admitted that sustainable development required more time as financial risk and soaring unemployment remain.

The former official projection revealed that public debt would climb to 83.2 percent of GDP in 2010, which was followed by an increasing debt as high as 87.1 percent by 2012, both on the alarming brim against EU finanical regulation.

Source: Xinhua

(Editor:张茜)

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