PARIS, April 28: The French government said on Monday it was maintaining its 2008 and 2009 growth and public deficit forecasts, which are much more optimistic than those of the European Union.

The government sees growth this year of between 1.7 and 2.0 per cent, with a public deficit of 2.5 per cent of output. In 2009, growth should come to 1.75-2.25 per cent, with a deficit reduced to 2.0 per cent, according to Paris.

The European Commission meanwhile predicts French growth this year of only 1.6 per cent and a shortfall in public finances of 2.9 per cent. For 2009 the comparable forecasts are 1.4 per cent and 3.0 per cent.

“We are maintaining our projections, especially as we are seeing the first fruits” of the government’s economic policies, a source with the finance ministry told AFP.

“The figures from the first quarter of 2008 are far from being bad,” the source insisted.

—AFP