The forecast advanced by the Minister of Public Accounts in the “Sunday Journal” is better than the 8.2% announced last year. Improvement is due to stronger growth and social security recovery.
Le Monde with AFP
The public deficit of France will ultimately be “close to 7%” of the gross domestic product (GDP) in 2021, “said Olivier Dussopt, the Minister of Public Accounts at the Sunday Journal (JDD) of January 16 , while the government still established 8.2% last year.
This improvement is due to “larger tax revenue than expected” related to stronger growth than previously felt and the recovery of social security accounts “through the resumption of employment and returns from contributions, “said the minister.
In early January, the Minister of Bruno Economy The mayor had already judged that the budget deficit of 2021 would be “significantly less than 8%” of GDP. Olivier Dussopt recalled that in the latest forecast of INSEE, growth is expected to reach 6.7% in 2021, compared with 6.25% depending on the government’s forecast, which dates back to September.
A deficit of 5% expected for 2022
The social security deficit, “40 billion euros in 2020, descended in 2021 to about 25 billion. We expected nearly 33 billion,” details the minister.
The state deficit would be 171 billion euros, either “nearly 34.5 billion less compared to our latest forecasts”, again congratulated Mr. Dussopt. “All these movements support our 5% deficit forecasts in 2022, and then to 3% in 2027,” he added, stating that the rise in interest rates does not call into question the objective of 5 % deficit for this year.