Emmanuel Macron promises “a much better second half of 2024” for French growth

GDP growth reached 0.2% in the first quarter of 2024, while the public deficit widened to 5.5% of GDP last year.

In an interview published Wednesday May 22 by The ExpressEmmanuel Macron forecasts a clear improvement in French growth in the second half of 2024 and says he wants to maintain the course of reforms in order to restore public finances. “In terms of growth, we should have a much better second half of 2024. Inflation, moreover, has landed very quickly, much faster than in the past. (…) And this, without entering in recession”declared the President of the Republic.

After 2.5% in 2022, gross domestic product (GDP) growth slowed sharply last year, to 0.9%, in a context of inflation and high rates. It reached 0.2% in the first quarter of 2024. Due to lower-than-expected revenue, the public deficit widened to 5.5% of GDP in 2023, compared to the expected 4.9%. For 2024, it is expected to reach 5.1%, more than the initial target of 4.4%.

“Apart from a drift in initially planned expenditure which is due to local authorities, there is no slippage in State expenditure, its budget is even rather under-consumed“, defended Emmanuel Macron. He reiterated his ambition to bring the public deficit below the threshold of 3% of GDP in 2027, in line with European standards, while ten billion euros of savings in government spending The State have already been recorded in 204. The government is seeking to make ten billion additional cuts.

“Was it necessary to change policy? The answer is no. Constancy, coherence, confidence: we are staying the course, because our strategy is the right one”, explains the head of state. He defended his economic reforms and his political strategy characterized in particular by tax cuts. Despite degraded public finances, Emmanuel Macron also repeated his commitment to reduce taxes on the middle classes by 2 billion euros in 2025.