2014 French growth will be lower than expected

French industrial production decreased by 0.5% in the second quarter that may lead to a lower than expected 2014 growth rate.

Reuters/Alex Domanski

The first estimation for the second quarter’s growth will be revealed on August 14. It is expected to be between zero and 0.1%.

Although industrial production increased by 1.3% in June, this was not enough to limit the second quarter’s bad economic results.

The Government forecasts a 1% growth in 2014. This objective may not be reached, according to Christopher Dembk from the Saxo Bank.

The credit rating agency Moody’s also reviewed its 2014 French growth forecast, lowering it to 0.6%.

This low growth rate may certainly impact the already high French public deficit, which amounts to 59.4 billion euro.

In 2013, the deficit represented 4.3% of GDP (Gross Domestic Product) that is 1.3 points more than the authorized limit imposed by the European Union.

In 2014, it is also not likely to be under 3% of GDP.