The IMF holds a more pessimistic outlook on France’s growth, estimating the deficit to reach 3.8% in 2013 and 3% in 2014. It points to potential risks from sovereign concerns if the Eurozone financial problems continue.
“A swing in investor sentiment could affect the availability and cost of financing to banks and the sovereign,” the IMF added.
The IMF calculates that the French economy will slow to 1.9% in 2012 after expanding 2.1% this year, as compared to the French government’s projection of 2.25% growth for 2012, reports Francesco Fontemaggi for AFP.
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For more information on the French economy, visit our France category.
Max Chen contributed to this article.