• France's news in English

Minister: France is out of recession

AFP · 11 Aug 2013, 11:01

Published: 11 Aug 2013 11:01 GMT+02:00

Facebook Twitter Google+ reddit

The French government had been expected to present a modest growth of around 0.1 percent, still judged by economists to be insufficient to reduce unemployment.

Despite the government's revision, the minister told the Nice Matin newspaper that the "French economy is out of recession and is recovering to be more sustainable, stronger and able to create more jobs".

"What is important is that the trend has reversed," said the minister.

"After two quarters of negative growth, the last quarter of 2012 and the first of 2013, the second and third quarters of 2013 will experience positive growth," he predicted, adding that "all indicators would improve, starting with industrial production".

"I have every reason to believe that 2014 will be the first year of real growth for three years," said Moscovici.

Despite this, the economy's stagnation in 2013 complicates preparations for next year's budget.

The minister indicated to Nice Matin that the 2014 budget, to be revealed in the next few weeks, will make a provision for an increase in the tax burden equivalent to 0.3 percent of gross domestic product.

"We must reduce the deficit... but at a pace which does not upset growth.

Story continues below…

"First, in line with International Monetary Fund recommendations, we will reduce public spending, then by a limited increase in the tax burden of 0.3 percent, in line with social justice," said Moscovici.

In its annual report on the French economy, published Monday, the IMF estimated that Paris had begun to "stabilise deficits" but should slow down the pace of austerity.

It recommended France continue its efforts but to rely more on spending cuts and less on tax increases.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Is Marks & Spencer to close Champs-Elysées store?
Photo: AFP

Is it goodbye to crumpets, jam, and English biscuits?

After Calais, France faces growing migrant crisis in Paris
Photo: AFP

While all the focus has been on the closure of the Jungle in Calais, France must deal with the thousands of migrants sleeping rough in Paris. And their numbers are growing.

Restaurant boss suspected of kidnapping Cannes millionaire
The Nice residence of the president of Cannes' Grand Hotel, Jacqueline Veyrac. Photo: AFP

A restaurant owner 'harbouring a grudge', apparently.

Le Thought du Jour
Vive le pont - The best thing about French public holidays
Photo: AFP

The UK might have guaranteed public holidays, but France has "les ponts".

What's on in France: Top things to do in November
Don't miss the chocolate fashion show in Lyon. Photo: Salon du chocolat

The autumn is in full swing in France, and there's plenty to do.

What Paris 'squalor pit' Gare du Nord will look like in future
All photos: Wilmotte et Assoicés

IN PICTURES: The universally accepted 'squalor pit of Europe' is finally getting a facelift.

Halloween: The ten spookiest spots in Paris
Is there really a ghost on the first floor of the Eiffel Tower? Photo: AFP

Read at your own peril.

Halloween holiday in France: Traffic nightmares and sun!
Photo: AFP

But it's great news for the country's beleaguered tourism industry.

French MPs vote to make Airbnb 'professionals' pay tax
Photo: AFP

Do you make a lot of money through Airbnb in France? You'll have to pay a share to the taxman in future.

France and Britain accused of abandoning Calais minors
Photo: AFP

Scores of young migrants are forced to sleep rough for a second night.

Fifteen of the most bizarre laws in France
Sponsored Article
Last chance to vote absentee in the US elections
Medieval town in south of France upholds ban on UFOs
Mouth fun? French words you just can't translate literally
How France plans to help its stressed-out police force
Paris: 'Flying' water taxis to be tested on River Seine
Paris landlords still charging illegally high rents
Calais migrants given mixed reception in French towns
Lonely Planet says Bordeaux is world's best city to visit
What rights to a future in France for Calais migrants?
Myth busting: Half of French adults are now overweight
How speaking French can really mess up your English
The annoying questions only a half French, half Brit can answer
Forget Brangelina's chateau - here are nine others you've got to see
The must-see French films of the millennium - Part One
How life for expats in France has changed over the years
Why Toulouse is THE place to be in France right now
Video: New homage to Paris shows the 'real side' of city
The 'most dangerous' animals you can find in France
Swap London fogs for Paris frogs: France woos the Brits
Anger after presenter kisses woman's breasts on live TV
Is France finally set for a cold winter this year?
IN PICS: The story of the 'ghost Metro stations' of Paris
How to make France's 'most-loved' dish: Magret de Canard
jobs available