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French GDP grows by 0.7% this year and advances to 1.3% in 2025
The European Commission estimated today that economic activity in France will remain moderate in 2024, with growth of 0.7%, and will gain momentum in 2025, increasing by 1.3%.
© Lusa
Economia Comissão Europeia
In the economic forecasts for spring, released today, the EU executive revised downwards the estimates that had been put forward in the winter exercise (in February) and which predicted a 0.9% growth in the French Gross Domestic Product (GDP) this year.
For Brussels, the progressive economic recovery in France is due to the "moderation of inflation and the easing of financing conditions in the second half of the year", with private consumption being the main driver of the second largest European economy.
The predicted inflation rate is 2.5% for this year, falling to 2.0% in 2025, favoured by a reduction in energy and raw material prices.
Unemployment will be 7.7% in 2024, rising slightly to 7.8% the following year.
The public deficit, on the other hand, should be set at 5.3% of GDP in 2024 and 5.0% in 2025 and the debt at 112.4% and 113.8% of GDP, respectively.
The upward trend in debt is mainly due to "high primary deficits and increased interest payments, while the debt reduction effect resulting from nominal growth should be more moderate than in recent years", predicts the EU executive.
The European Commission publishes two global forecasts (spring and autumn) and two interim forecasts (winter and summer) every year.
Read Also: Brussels improves EU growth to 1% and keeps the eurozone at 0.8% (Portuguese version)
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