France revises down budget deficit

France revised down its budget deficit forecast from three percent to 2.9 percent of output in 2017 and from 2.7 to 2.6 percent for 2018, Finance Minister Bruno Le Maire said on Tuesday.

"In 2017, we're targeting 2.9 percent of public deficit and in 2018, we're targeting 2.6 percent," Le Maire said in an interview with French broadcaster France 2.

"It's a little better than what we first indicated to lawmakers, because the growth is a little better," he added.

Le Maire also said the government aimed to cut public spending by €16 billion ($19.9 billion) in 2018 instead of an initially planned €20 billion ($23.9 billion).

Budget minister Gerald Darmanin confirmed on Monday that the 2018 budget to be presented on Sept. 27 was based on a growth forecast of 1.7 percent, which marks France's strongest economic performance since 2011.

A deficit under three percent of GDP for two consecutive years would allow France to exit the EU's "excessive deficit procedure".