France is not falling into recession, according to Le Maire

French Minister of Economy and Finance Bruno Le Maire delivers a speech during the MEDEF trade union summer forum “La Rencontre des entrepreneurs de France, LaREF” at the Paris Longchamp racecourse in Paris, France, on August 30, 2022. REUTERS/Sarah Meyssonnier/File Photo

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PARIS, Sept 14 (Reuters) – French Finance Minister Bruno Le Maire said on Wednesday the economy was not facing recession after the government downgraded its economic outlook for 2023.

The Mayor also told CNews television that 2022 economic growth was being revised to 2.7% from 2.5%.

France is not going into recession. France is having a good year 2022. We have revised our growth estimate upwards to 2.7% from 2.5%,” said Le Maire.

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The French government on Tuesday lowered the outlook for economic growth for 2023 to 1% from 1.4% previously. Read more

Asked to comment on the government‘s plans to allow gas and electricity prices to rise for households in 2023 amid soaring energy prices, Le Maire reiterated that it was “legitimate” that French households absorb a “small part” of the increased costs.

He did not confirm that the expected rise in gasoline prices could reach 15%, as the media speculates.

Prime Minister Elisabeth Borne will detail the government’s energy policy at a press conference scheduled for 13:30 GMT.

Current caps on electricity prices and a gas price freeze worth a combined 16.5 billion euros ($16.8 billion) are set to expire this winter.

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Reporting by Dominique Vidalon; Editing by Benoit Van Overstraeten and Andrew Cawthorne

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