The IMF on Thursday lowered its growth forecast for France this year and warned the country might miss its targets to cut its budget deficit.
The Washington-based body cut its GDP growth projection for France this year to 0.7 percent, down from the 1 percent it had forecast in April.
Unemployment in the eurozone’s second-largest economy is predicted to remain high until 2016, while stalling economic growth means that France’s public deficit is likely to exceed EU targets and hit 4 percent this year.
“The French economy has shown great resilience during the global financial crisis, but the pace of recovery has been slow,” the IMF said in a statement.
It also called for “deeper structural reforms” to help turn the economy around.
French President Francois Hollande’s Socialist government is struggling to boost growth in France’s sluggish economy and stem rising unemployment.
The number of registered unemployed in France has meanwhile suffered a big jump in May, rising by 24,800 to a new record of 3.388 million.
France had been supposed to get its public deficit down to 3 percent of output, but won a reprieve from the European Commission, and was aiming for 3.8 percent this year.
National audit body, the Accounting Court, this month warned France’s future growth could be threatened by its growing public deficit.
The government has pledged cuts in planned spending totaling 50 billion euros (US$68 billion) by 2017 to restore export competitiveness, boost growth and create jobs.
The IMF said France would have to carry on with these policies noting that there was “little room for deviation.”
For next year, it predicted France’s economic growth would rise to 1.4 percent, accelerating to 1.7 percent in 2016, 1.8 percent in 2017 and 1.9 percent in 2018 and 2019.
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