France set to beat 2015 public deficit targets

LONDON (ShareCast) - The French economy expanded at a very modest pace towards the end of 2014, but the red ink at the Elysee palace was significantly less than expected. In the last three months of the year, gross domestic product (GDP) in the Eurozone's second largest economy grew at a 0.1% quarter-on-quarter pace, INSEE (National Institute of Statistics and Economic Studies) announced.

The figures are in line with market expectations. In parallel, INSEE said France's public deficit, as a ratio of GDP, fell to 4% last year in comparison to 4.1% in 2013.

The Elysee had previously estimated that the government's red ink would reach 4.4%.

As a result, France's finance minister said the 2015 target for the public deficit might be revised lower, to 3.8% from 4.1% previously.