The public debt rises 101.2% of GDP in the first quarter, The Point

The public debt in france had never known such increase since the second quarter of 2009. At the end of march, it amounted to 101,2 % of the gross domestic prod

The public debt rises 101.2% of GDP in the first quarter, The Point

The public debt in france had never known such increase since the second quarter of 2009. At the end of march, it amounted to 101,2 % of the gross domestic product (GDP), or 2 usd 438.5 billion euros, an increase of 3.1 points compared to the end of December. As reported by the Insee on Friday, June 19, this outstanding increase is mainly due to " the decline of the activity in the first quarter related to the health crisis, and support measures to households and businesses ", such as the part-time unemployment, and postponement of employer contributions, which have come to burden the accounts of social security administrations.

The debt of social security funds (Acoss, Cades, Unedic, hospitals and Cnaf), which funded most of the measures taken from mid-march to fight against the economic consequences of the epidemic of Covid-19, is thus increased from 8.7 billion euros. This increase in the debt of social security funds " contrast with the debt reductions of the past two years at the same time (- $1.2 billion in the first quarter of 2019 and $ 11.2 billion in the first quarter of 2018) ", highlights the Insee.

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the debt of The State, on the other hand, increased from 46.4 billion euros, from " primarily of the marketable debt in the long term ", while the local governments have seen their debt increase by 3.3 billion euros, " including the Société du Grand Paris (+€2.5 billion) ", explains the Insee. Recently, the public debt had already exceeded by three times the GDP : during the third quarter of 2019, and by 2017, after the incorporation of the debt of the SNCF, where it had reached 100,7 % in the first quarter, and with 100.9% in the second quarter. The end of 2019, the public debt had reached 98.1% and, because of the crisis, the government expects that she climbs 120,9 % of GDP this year.

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Updated Date: 19 June 2020, 06:33

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