French business morale at three-year high as public deficit continues to be cut
London, 26 March 2015
The public deficit in France continued its downward trajectory in 2014, reaching 4% of GDP despite the difficult economic conditions. This is significantly below the government target of 4.4% and reflects the concerted effort by all public administrations in France to control public spending (source: Ministry of the Economy, Finances and Industry). The better-than-expected outcome should allow the government to revise its public deficit target for 2015 down from 4.1% to around 3.8% of GDP.
Business confidence is also improving, with the INSEE (National Institute for Statistics and Economic Studies) recording a three-year high in business morale in March. Rising to 96 from 94 in February, the composite business climate indicator is at its highest since April 2012, lifted by improvement in the retail and services sectors (source: INSEE).