France’s public debt hits over 118 pct of GDP in Q1

France’s public debt reached 2,739.2 billion euros (about 3,271.3 billion U.S. dollars) in the first quarter of this year, accounting for 118.2 percent of gross domestic product (GDP), the National Institute of Statistics and Economic Studies (INSEE) announced on Friday.

“After the decrease in the fourth quarter of 2020 (minus 23.7 billion euros, about minus 28.29 billion dollars), public debt strongly increased by 89 billion euros (about 106.27 billion dollars) this quarter, partly due to finance measures linked to the health crisis and the recovery plan,” INSEE said.

“Almost half of the increase in public debt in the first quarter fed the general government’s cash position, so that net public debt increased more moderately (48.3 billion euros, about 57.67 billion dollars),” it added.

Over the first three months of 2021, debts of the state and central agencies, and social security funds went up while those of local governments were almost stable, INSEE said.

In the euro-zone, the term of “Maastricht’s debt” covers all general governments in the sense of national accounts: the state, other government bodies, local governments and social security administrations.

Under the Maastricht treaty, which entered into force on Nov. 1, 1993, for a state to move into the single currency, namely euro, the public finance deficit must be kept below three percent of GDP and public debt must be limited to no more than 60 percent of GDP.

The government expects public debt to account for 117.2 percent of GDP for the whole year of 2021, compared to that of 115.1 percent recorded last year.

Source: France's public debt hits over 118 pct of GDP in Q1 | Macau Business