Published
The Franceinfo Talk show on April 17 looks at inflation and the 20 billion euros economy in 2025. Ludo Pauchant receives the political scientist Olivier Rouquan and the economist Anne-Sophie Alsif.
On February 18, the government announced lower growth and higher deficit than expected. In fact, the executive lowered its forecast from 1.4% to 1% and the 4.9% deficit that the government was targeting in 2023 has been largely exceeded.
20 billion euros in savings needed
On March 6, the Minister Delegate for Public Accounts, Thomas Cazenaveannounced that the savings to be made on the State and Social Security budgets should reach “at least 20 billion euros” in 2025. “We have entered a new context of public finances marked by a less favorable economic situation and high interest rates”, he indicated.
Growth that will suffer from these savings plans
Wednesday April 10,‘French Observatory of Economic Conditions (OFCE) estimated that French GDP growth will be reduced by 0.2 points in 2024, then 0.6 in 2025. The savings planned by the government contribute to the lowering of the growth forecast of the organization independent research for 2024, at 0.5% compared to 0.8% anticipated until then. For its part, the government is counting on 1% growth.