France: Government Debt Rises to 112% of GDP in Second Quarter
Prices are rising, too: +1.2% In September
The new French government of Prime Minister Michel Barnier will have to face a difficult legacy in terms of both budget deficits and inflation rates. According to data just released by the National Institute of Statistics and Economic Studies (INSEE), France’s public debt has risen to 112% of gross domestic product at the end of the first half of 2024, a marked increase from the 110.5% recorded for the first quarter. In monetary terms, public debt increased by €68.9 billion to €3228.4 billion between April and June 2024.
Inflation is also not giving any respite: in September, according to preliminary INSEE calculations, the French inflation rate rose again by 1.2% year-on-year after recording +1.8% in August 2024. According to INSEE analysts, “the slowdown is attributed to the fall in service prices, which went down from 3% to 2.5%, with energy and manufacturing prices falling by 3.3% and 0.3% respectively in the first twenty days of September.”
