France forecasts weak growth next year amid energy crisis
France is forecasting growth to slow down substantially next year in the EU’s second-biggest economy
PARIS (AP) — France forecasts growth to slow down substantially next year in the EU's second-biggest economy, amid fears of a recession in neighboring Germany as the economic situation in Europe is slammed by the impact of Russia’s war in Ukraine.
France’s budget, presented Monday in a Cabinet meeting, is based on an predicted growth of 1% next year — down from an estimated 2.7% this year.
As the country faces soaring energy and food prices, Finance Minister Bruno Le Maire said inflation in France is expected to reach 6% in the coming months and 4% later next year.
Also on Monday, the Paris-based Organization for Economic Cooperation and Development (OECD) said it anticipates almost flat growth next year in the 19-nation euro zone largely due to a recession in Germany, where the gross domestic product is expected to contract by 0.7%.
