France revises deficit forecast on low growth

France revised its public deficit forecasts yesterday acknowledging it would take advantage of an extra two years granted by the EU to put its finances back on track while preserving fragile growth.

The eurozone’s second- largest economy exited a shallow recession in the second quarter but struggles with weak activity and high unemployment.

As a result, its 2014 budget will be based on a growth forecast of 0.9%, the government said, lowered from a previous 1.2% forecast. It confirmed it expects feeble growth of 0.1% this year.