Eurozone | 2022 French deficit at least €40bn wider than budget
We estimate France’s fiscal deficit in 2022 will be around €40bn wider than projected by the government in its draft budget, at 6.3% of GDP versus the official 4.8% target. This is due to additional fiscal support measures, the cost of the France 2030 investment plan, and differences in baseline assumptions.
What you will learn:
- The additional fiscal easing will help smoothing the impact from the surge in energy prices.
- Our projection for public debt is higher than government estimates, with GDP peaking in 2024.
- However, the deficit gap could end up even wider in 2022, particularly if energy prices rise more than the government expects.
Tags:
Related Services
Post
US-China relations improve, yet industrial recession remains likely
For the first time this year, our global industrial production outlook for 2025 has been upgraded. However, we still anticipate an industrial recession in Q2 and Q3.
Find Out More
Post
Positive tariff news does little to dispel overall uncertainty
We've nudged up our world GDP growth forecasts for 2025 and 2026 by 0.1ppt to 2.4%, in part to reflect the temporary but substantial reduction in tariffs between the US and China.
Find Out More