France lowers its growth forecast for 2019 to 1.7 per cent

PARIS – France’s prime minister says the government has lowered its economic growth forecast for next year and unveiled plans to cut public spending.

In an interview Sunday with Le Journal du Dimanche, Prime Minister Edouard Philippe said the government will base its 2019 budget on an estimated growth of 1.7 per cent, down from 1.9 per cent previously expected.

He said France is still committed to be in line with European Union rules regarding public deficits.

Philippe explained some measures included in the 2019 budget, which is to be formally presented at the end of September. He said pensions and family and housing benefits will not be pegged to inflation anymore —meaning they will increase at a more moderate pace.

The French government will also cut 4,500 public service jobs next year.