France’s public debt further swelled in the third quarter, standing at 113.7% of gross domestic product (GDP) at the end of September compared to 112.2% at the end of June, INSEE said on Friday.
The “Himalayas” continue to grow. According to INSEE estimates published this Friday, France’s public debt reached 3,303 billion euros at the end of the third quarter of 2024. Its highest level ever reached in absolute value, and the highest since the start of 2022.
Expressed as a percentage of GDP, it stands at 113.7%, after 112.2% in the second quarter of 2024.
The State responsible for the increase in debt
Over the past three months, debt increased by 70 billion euros, compared to 69 billion euros in the second quarter.
According to INSEE, this increase is mainly due to the state debt, which jumped by 59.8 billion euros, and 70 billion euros in the previous quarter.
At the same time, the debt of administrations is stagnating, with an increase of “only” 0.2 billion euros, after a drop of 4.7 billion euros in the previous quarter.
The debt of social security administrations also increases (+10.4 billion after +4 billion), to 290.8 billion euros, as well as that of local authorities (+1.3 billion euros to 252.2 billion ), while it had fallen by 300 million in the second quarter.
Political uncertainty
French public debt, rwas confined to between 60% and 70% of GDP in the early 2000sexperienced a first surge after the 2008 crisis, stabilized around 100% at the end of the 2010s, before a second dazzling restart due to massive “whatever it takes” spending linked to the Covid health crisis.
And while the censorship of Michel Barnier’s government has plunged the country into political uncertainty, the rating agencies are waiting for France to turn the corner. On December 14, the rating agency Moody’s lowered France’s rating by one notch, to AA3.
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