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OECD trims French growth forecast; advises against more spending cuts

Published on Mar 19, 2013 4:23 PM

PARIS (AFP) - The OECD trimmed its growth forecast for France on Tuesday but recommended the government avoid more spending cuts to meet it EU deficit reduction pledges.

The Organisation for Economic Cooperation and Development said it now expects the French economy to grow by 0.1 per cent this year, instead of the 0.3 per cent it forecast earlier.

It said it expected France's public deficit would come in at 3.5 per cent of economic output this year.

France had pledged to return to the 3.0 per cent EU deficit ceiling this year, but the OECD forecast that this will only be achieved next year.

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