French Finance Minister Bruno Le Maire said he’s sticking to a forecast of 1% economic growth this year despite a winter recession in the euro area and predictions for sluggish activity in the coming months.

“I’m keeping the growth forecast, but I’ve said clearly that I’m lucid about the economic environment,” Le Maire said in an interview on France 2 television on Tuesday.

Last week, national statistics agency Insee said it expects only a 0.6% expansion in gross domestic product this year as high inflation and rising interest rates dampen investment.

The government is counting on a stronger performance to keep on track with a multi-year deficit reduction plan it presented only two months ago. Yet Le Maire has also set out plans for additional savings of €10 billion ($10.9 billion) euros a year by 2027.

The Finance Ministry will review its predictions for economic activity when it presents the 2024 budget in September, Le Maire said.

“We will continue to look at things closely,” he added.