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French Govt. May Cut 2013 GDP Outlook, Foreign Minister Says

2/19/2013 5:08 AM ET

The French government will likely cut its growth forecast for the economy this year to 0.2-0.3 percent from the previously estimated 0.8 percent, Foreign Minister Laurent Fabius said in a radio interview on Tuesday.

"We have to revise it downward," the minister told RTL radio. He noted that the forecast was around 2.1 percent earlier and then it came down to 0.8 percent.

Fabius' remarks come a day after Finance Minister Pierre Moscovici said that the French government could adjust its economic forecast and budget targets once the European Commission releases its forecasts on February 22.

Moscovici said that he did not believe France's credibility would not be at stake, were it to miss or postpone the 3 percent deficit target.

Last week, President Francois Hollande has indicated that the goal of 0.8 percent GDP growth may not be achieved.

Earlier, Prime Minister Jean-Marc Ayrault had voiced doubts about meeting the government's deficit reduction target this year due to weak economic growth.

by RTT Staff Writer

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