PARIS (Reuters) – France’s public deficit is expected to be around 7% of gross domestic product (GDP) in 2021, lower than expected thanks to tax revenues generated by the stronger-than-expected recovery in growth , told the Sunday newspaper the Minister of Public Accounts.
“We forecast a deficit of 8.2% of GDP in 2021, but it will be significantly lower: it will be close to 7%, as our forecasts stand,” said Olivier Dussopt.
“All these movements confirm our forecasts of a 5% deficit in 2022, then 3% in 2027. This is the demonstration that we can respond to the crisis, revive the economy while returning to a sustainable budgetary trajectory”, has been he adds.
Olivier Dussopt indicated that the rise in interest rates “does not call into question (the) public deficit target of 5%.”
The minister also said that with the growth rate of the French economy expected to reach 6.7% in 2021 according to INSEE, against 6.25% in the government’s latest working hypothesis, the state deficit will increase. found it reduced.
“In 2021, it represents 171 billion euros. This is almost 34.5 billion of improvement compared to our last forecasts!”, He continued.
(Gilles Guillaume, said by Camille Raynaud)