France’s public deficit expands in ’24, spending surges

France’s general government deficit widened to €169.6 billion in 2024, reaching 5.8 per cent of GDP, up from 5.4 per cent in 2023, according to preliminary data from the National Institute for Statistics and Economic Studies (INSEE) on Thursday.

Public debt rose to 113.0 per cent of GDP from 109.8 per cent the previous year.

Government revenues increased by 3.1 per cent, while expenditures rose by 3.9 per cent, driven by higher social benefits and pension costs. Debt interest payments surged 14.6 per cent, reflecting higher borrowing costs.

Local government deficits expanded, while the state and central government bodies saw stable shortfalls. Social security funds’ surplus shrank as rising welfare payments outpaced revenue growth.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser