France cuts 2011 growth forecast

France has reduced its forecast for GDP growth in 2011 from 2.5% to 2% following an emergency meeting convened by President Nicolas Sarkozy.

In 2010 the French government announced economic growth would either meet or exceed 1.4%. The 2011 estimate of 2%, remains 40 basis points ahead of the International Monetary Fund’s (IMF) forecast of 1.6%.

After the meeting Sarkozy said reducing France’s government deficit from 8% to 6%, was a major objective. To achieve this he said he would need to find €100 billion (£90 billion) in savings.