OECD Economist Forecasts 'Weaker' French Growth In 2013

The French economy will probably grow by less than expected next year, the OECD's chief economist said Thursday, making it harder for the new government to reduce an excessive public deficit.

"France will be weaker next year," Pier Carlo Padoan told a Paris press conference in response to a question regarding the country's chances of achieving its 2013 growth target of 1.2 percent.

That was also the forecast released in May by the Organization for Economic Cooperation and Development (OECD).

French authorities have said they expect to revise the forecast lower when next year's budget is published at the end of September.

"This will have an impact on reaching the fiscal target" of cutting France's public deficit to 3.0 percent of gross domestic product (GDP) in 2013 from 4.5 percent this year, Padoan noted.

France's new Socialist government has insisted it will manage to reach that target even if economic growth is weaker than anticipated.

With some calling for the 3.0-percent target to be pushed back and the focus to be placed on measures to spur business activity, the OECD economist stressed that fiscal "adjustment must be continued" to maintain France's credibility on financial markets.

For 2012, the OECD now expects the French economy to post very slight growth of 0.1 percent, down from a previous forecast of 0.6 percent.