French Economy Braces for Gloom Amid Trade Tensions

French Finance Minister Eric Lombard announced a reduction in the country's 2025 growth forecast to 0.7%, down from the previously expected 0.9%, due to escalating global trade tensions. Despite this, the government remains committed to cutting the public sector deficit from 5.8% to 5.4%.

French Finance Minister Eric Lombard announced on Wednesday a revision of the country's 2025 economic growth forecast, citing the impact of a global trade war.

The government now anticipates a 0.7% growth, down from the previous forecast of 0.9%, prompting concerns for the euro zone's second-largest economy.

Amid these challenges, Lombard assured that the government is determined to reduce the public sector deficit to 5.4% this year, despite needing additional budget cuts.

(With inputs from agencies.)