The Bank of France forecast today that the French economy would expand by 0.6% in the fourth quarter of 2010, short of the figure required to meet the annual growth target of 1.6%.
The French economy needs to expand by 0.7% in the fourth quarter to meet its target of 1.6% growth for 2010. Expansion of 0.6% matched a previous forecast last month, the bank said in a statement.
Meanwhile, France will meet its 2010 budget deficit cutting target, even if growth is slower than expected, the budget minister said today.
Budget Minister Francois Baroin said the government would meet the 2010 budget deficit target of 7.7% of gross domestic product.
Meeting the target has become ever more important given growing strains in the euro zone. Some members have been unable to control their debt and deficits, and Greece and Ireland have been rescued.
In recent weeks, the spotlight has fallen on Portugal as the next likely candidate for a bailout, with Spain also mentioned.
France, with a deficit among the biggest and far above the 3% EU limit, nonetheless has managed to retain the confidence of financial markets so far, with slow growth picking up modestly through 2010.
