France's Growth Forecast Slashed Amid Global Trade Tensions

French Finance Minister Eric Lombard announced a reduced growth forecast for 2025 due to the global trade war, but the government remains committed to deficit reduction. The economy is forecasted to grow at 0.7%, with plans to cut the public sector deficit to 5.4% this year.

French Finance Minister Eric Lombard announced on Wednesday a downward revision of the country's growth forecast for 2025, citing the escalating global trade war as a significant factor.

The government's goal is to reduce the public sector deficit from 5.8% last year to 5.4%, despite the revised economic growth projection.

While acknowledging the potential moderate impact of U.S. tariffs on France, Lombard remains hopeful in achieving deficit targets without severe budget cuts or tax increases.

(With inputs from agencies.)