French Economy Misses Growth Target in 2013 while Deficit Remains High

President François HollandePhoto: flickr.com/jmayrault

President François Hollande
Photo: flickr.com/jmayrault

Yesterday, before the European Commission releases its economic forecasts for the 2013 fiscal year today, President Francois Hollande announced that France would not meet its economic growth target for the coming year. However, he assured the public that France would not increase austerity measures.

The .8 percent target growth was well beyond the realm of possibility, as France reported only a .1 percent growth at best for the coming year.  As a result, France also failed to lower its deficit to below 3 percent, and projected figures estimate that the deficit will remain around 3.6%.  Calls for spending cuts have already begun in order to improve France’s economic state. The French people are pressuring Hollande to pull France out of this fiscal turmoil.

Given the tumultuous state of all European countries’ economies, France’s state of affairs is not surprising.  France was not alone in failing to meet its deadline for growth targets.  The European Commissioner for Economic and Monetary Affairs, Oil Rehn, announced that the commission may extend France’s and other states’ deadlines to meet their economic goals.

Ever since the recession of 2008, France and Europe have struggled to regain economic footing.  These numbers are another indication that more drastic measures must be taken in order to improve Europe’s fiscal crisis.

Trackbacks

  1. […] There is at least one anomaly that this controversy reveals: Montebourg seems to spend most of his time trying to stop the bleeding in French industry, proving the “Productive Recovery” is closer to a dream than to reality, especially given the desperately slow growth in the French economy. […]

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