As reported by the Washington Post, French Prime Minister Francois Fillon said on Monday that the country is slashing its forecast for economic growth this year from 1 percent to 0.5 percent.
The move enables the government to “take into account the deteriorating economic environment” before revising the budget with a last-minute package of measures that are to go before the Cabinet next week, Fillon said.
France had stuck with the 1 percent forecast since November.
Finance Minister Francois Baroin said earlier that a slowdown had been observed “for the last three or four months.”
Last week the International Monetary Fund said it forecasts the French economy to grow only 0.2 percent this year.
The lower growth figure will have an approximately €5 billion impact, Fillon told reporters, but he added that this “can be reabsorbed” because of past efforts and a prudent budget.