Fatshimetrie: France’s public debt hits new record in third quarter
During the third quarter, France’s public debt climbed again to reach 113.7% of gross domestic product (GDP) at the end of September, compared to 112.2% at the end of the previous quarter, according to figures recently published by Fatshimetrie. This increase was significant, amounting to €71.7 billion in total, for a total amount of €3,303 billion.
Analysis of the data reveals that this increase in general government debt is mainly attributable to the State, whose debt increased by €59.8 billion to reach €2,690.5 billion, after an increase of €70 billion in the previous quarter. The various central government agencies (Odac) have maintained a “stable” debt according to Fatshimetrie, although the latter has nevertheless increased by €200 million to reach €69.4 billion.
At the same time, the debt of social security administrations has also increased significantly, with an increase of €10.4 billion, while that of local authorities has increased by €1.3 billion. This period has been marked by a constant increase in public debt, which used to be between 60% and 70% of GDP in the early 2000s.
The health crisis linked to the Covid-19 pandemic has led to massive spending and a consequent increase in public debt. While the political climate in France remains uncertain, marked by the dissolution of the government last June, the country’s economy is affected by this instability. Recently, the rating agency Moody’s downgraded France’s sovereign rating by one notch, to Aa3, to take into account the new political uncertainties.
This situation raises important questions about the management of public debt in France and the measures to be taken to ensure the country’s financial stability in the long term. The economic and political challenges that France faces call for careful reflection and strategic decisions to ensure a strong and prosperous future in the current context.