The French economy will grow 1.3% this and next year before picking up speed afterwards, the Bank of France said on Friday in its biannual economic outlook, trimming slightly its forecasts, Reuters reported. The French central bank estimated that growth would pick up to 1.4% in 2018 and 1.5% 2019 as faster eurozone activity offsets weaker domestic demand. The government has built its 2017 budget on expectations for growth this year of 1.4% and 1.5% next year and anything less would put its deficit cutting promises at risk. The Bank of France estimated that the public deficit would fall from 3.3% of economic output this year to 3.1% in 2017, missing the current government’s target for 2.7% and an EU-imposed limit of 3%. “The outlook is in particular suffering from less favorable external demand in relation to France, notably because of the impact of Brexit,” the bank said in a statement.
