The government has raised its gross domestic product (GDP) growth forecast from 2.5% to 2.7% for 2022, Economy Minister Bruno Le Maire told Cnews on Wednesday. “France is having a good year in 2022. We have revised growth for 2022 from 2.5 to 2.7%,” the minister said. On Tuesday, he explained that 2.5% growth had already been achieved for the current year (acquired growth).
Despite geopolitical tensions and the energy crisis, “consumption is holding up”, “business investment is holding up, and job creation remains very dynamic”, explained Bruno Le Maire. “The fundamentals of the French economy are solid”, he assured despite the downward revision, from 1.4% to 1%, of the growth forecast for 2023, as part of the preparation budget for next year.
Inflation also revised upwards
The government also revised its inflation forecast for this year upwards on Tuesday, from 5% to 5.3%, with Bruno Le Maire anticipating a high price increase at least until February 2023. an increase in inflation until the summer of 2023″, but “we are going to have in the coming months, in the month of December, in the month of January, in the month of February, because the prices of energy remain very high, inflation that remains very high,” the minister said on Wednesday.
“That’s why we decided to maintain the energy shield” in 2023, he added. Prime Minister Elisabeth Borne is due to specify on Wednesday afternoon by how much gas and electricity prices will increase in January. The increase will be “contained”, according to Bruno Le Maire.