As investors and ratings agencies closely monitor France's public finances, Moody's is expected to provide an update on its assessment of the country's economic outlook shortly.

To meet its deficit targets, the government plans to freeze €5 billion in public savings, while Lombard has ruled out significant spending cuts or tax increases in the near future.

The French government has revised its economic growth forecast for 2025 down from 0.9% to 0.7%, a decision announced by Economy Minister Eric Lombard on April 9, 2025, amid ongoing uncertainties.

This adjustment aligns with a similar downgrade from the Bank of France, which cited the adverse effects of the trade war initiated by the Trump administration.

On the same day, the French Economic Observatory (OFCE) further lowered its growth estimate to 0.5%, reflecting a consensus of caution regarding future economic performance.

The announcement came shortly after U.S. President Donald Trump revealed a three-month suspension of tariffs on all countries except China, while simultaneously increasing tariffs on Chinese imports to 125%.

In light of these developments, Lombard stated that while support for businesses affected by U.S. tariffs would be provided, the era of unlimited financial aid is over due to budget constraints.

The French government is also grappling with additional financial challenges, including the need for €5 billion in unspecified budget savings and potential revenue shortfalls from new taxes.

Lombard indicated that future revisions to the growth forecast would depend on the outcomes of upcoming tariff negotiations with the United States, which are set to take place during the G7 meetings on April 22.

A growth rate of 0.7% could result in a public deficit increase of approximately €3 billion, complicating the government's goal to reduce the deficit to 5.4% of GDP by 2025.

During a Senate Finance Committee meeting, Lombard acknowledged the economic situation is under stress, reflecting broader concerns about public finances.

The High Council of Public Finances deemed the government's growth forecast as achievable but overly optimistic, with Finance Minister Amélie de Montchalin admitting to uncertainties surrounding growth predictions.