Hollande forecasting slow growth for France

on 10/09/2012 07:22:21

French president Francois Hollande is blaming a worse-than-expected economic slowdown for a new cut in the government's growth forecast this year and next.

Speaking in a televised interview on French channel TF1, Mr Hollande said gross domestic product growth will be "barely" zero this year and only 0.8% in 2013, well under the 1.2% his Socialist government had previously forecast.

Mr Hollande also is pledging to forge ahead with a controversial plan to raise income tax on France's wealthiest citizens to 75%.

Mr Hollande says he expects to unveil proposals for lifting France's growth and competitiveness by the end of the year, with the results expected to be felt in 2014.