France signals revision of 2013 growth forecast

France's growth forecast for this year is widely expected to be revised in the coming days, as the nation's accounting court warned government targets for the year are not likely to be achieved. The possible revision would present a policy dilemma for French President Francois Hollande. The court finds government's 3.0% of output deficit target for 2013 over-ambitious, also saying that the government should focus much harder on cutting expenditures. The latest projections, made by the French government, are showing that the economy will expand by 0.8% in 2013, while economists now expect little-to-no growth this year and the International Monetary Fund has further cut its forecast to a 0.3% expansion from 0.4%.

"The 3.0% deficit target has but few chances of being reached, notably because of a growth level likely to be below forecasts," said Cour des Comptes head Didier Migaud while presenting the watchdog's annual report.