Headlines
France lowers growth outlook as trade war bites
Published by Global Banking & Finance Review®
Posted on April 9, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 9, 2025
1 min readLast updated: January 24, 2026
France has reduced its 2025 growth forecast to 0.7% due to escalating trade war impacts, while aiming to cut the public sector deficit from 5.8% to 5.4%.
PARIS (Reuters) - French Finance Minister Eric Lombard trimmed the government's 2025 growth forecast on Wednesday as a global trade war escalates, but said that the government aimed to stick to its deficit reduction plans.
The euro zone's second-biggest economy is now expected to grow only 0.7% instead of the 0.9% it had based its 2025 budget on, Lombard said on television channel TF1.
Despite the darker economic clouds, Lombard said that the government still aimed to reduce the public sector deficit this year to 5.4% of economic output from 5.8% last year though that would require squeezing extra savings from the budget.
(Reporting by Benoit Van Overstraeten and Leigh Thomas)
The main topic is France's reduction of its 2025 growth forecast due to the impact of a global trade war.
The trade war has led France to lower its growth forecast and focus on reducing its public sector deficit.
France aims to reduce its public sector deficit to 5.4% of economic output despite a lowered growth forecast.
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