French Central Bank Chief Stresses Need to Cut Deficit Amid Slower Growth
France's Economic Outlook and Policy Recommendations
Current Economic Situation and Official Statements
PARIS, Sept 11 (Reuters) - French central bank chief Emmanuel Moulin said on Friday that France was not in catastrophic economic danger but the government must act to reduce the country's public deficit.
Revised Growth Forecasts
Moulin was speaking after INSEE revised its economic forecast for the euro zone's second-largest economy lower on Thursday, predicting growth of just 0.4% this year. Moulin cited several factors such as a deadly heatwave and issues at Airbus.
Comparison with Previous Projections
France's national statistics institute previously forecast growth of 0.7% for 2026, short of last year's 0.9% expansion.
Expert Opinions and Economic Strengths
"I wouldn't say it (the economy) is in danger, but it is in a situation that's worrisome and unsatisfactory," Moulin told RTL radio.
Deficit Reduction and Sectoral Strengths
"We need to reduce the budget deficit. But beyond that, the French economy has its strengths. It has inexpensive energy and a diversified economy. We're seeing an industrial upturn across promising sectors such as data centres, defence, and aerospace. So the situation isn't entirely catastrophic," he added.
Government Response and Next Steps
The French government is expected to lower its own growth forecast, currently at 0.7%, on Friday as it prepares to send its 2027 budget bill to parliament at the end of the month.
(Reporting by Dominique Vidalon; Editing by Makini Brice and Alexander Smith)