the government raises its growth forecast

The government, which was counting on growth of 6%, is thus aligning itself with the growth forecast of INSEE.

The government is raising its growth forecast in 2021 to 6.25%, instead of 6% until then, announced the Minister of the Economy Bruno Le Maire on Monday in the National Assembly, aligning the government forecast with that of the ‘Insee.

“Growth is strong, it is solid, it is dynamic, so we will revise the growth forecast for 2021 from 6 to 6.25%. In December 2021, we will return to the pre-crisis level of activity”, stressed Bruno Le Maire in front of the deputies who began Monday afternoon the last budget season of the five-year term.

The Banque de France expects growth of 6.3% in 2021.

“Our public deficit will not exceed 5% in 2022 including the investment plan and measures responding to the rise in the price of energy”, also indicated Bruno Le Maire.

“Protect the poorest households”

Still incomplete, the 2022 budget presented to deputies provides for growth of 4% and a deficit of 4.8% of GDP, but the government had suggested that the deficit could increase with the addition of several measures including the investment plan “France 2030” that Emmanuel Macron must unveil on Tuesday.

Bruno Le Maire also underlined the “financial effort” of the State to “protect” the French in the face of rising energy prices. These measures will cost “600 million euros for the energy check, and 5 billion euros for the reduction in taxation (on electricity), assuming that gas prices, which drive those of electricity, do not do not increase further, “he detailed.

“These are costly measures but they are necessary measures to protect the poorest households,” insisted the tenant of Bercy.

Bruno Le Maire mentioned three main risks for growth: a “systemic risk” with “exacerbated rivalry between nations at the risk of a conflict between China and the United States”; the threat of “inflation” for the daily life of the French; and the “labor shortage” due to recruitment difficulties in the building, catering, hotel industry …

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