Minister of Labor says France's economic growth forecast for 2025 to be lowered

France's Minister of Labor Astrid Panosyan-Bouvet announced a downward revision of the country's economic growth forecast for 2025 on Wednesday during a broadcast on France 2 TV channel. The GDP growth figure is likely to reach 0.7%, despite the previously planned 0.9% in the budget adopted after the government crisis.

In the new economic environment, Minister of Economics and Finance Eric Lombard is planning to officially revise the forecast by mid-April and take steps to keep the budget deficit at the target level. He said the difficulties in the reassessment are due to high household savings rates and rising borrowing costs caused by Germany's plans to increase spending.

Donald Trump's decision on tariffs is also putting additional pressure on French economic growth. Lombard emphasized the government's readiness to take the necessary measures to support the country's economic activity.