France

The euro area’s second-largest economy. It has run a budget deficit every year since the mid-1970s, and political splits have made it hard to pass budgets that reduce it.

Currency: Euro · Central bank: European Central Bank · Economy: about $3.6tn

1 · Government finances

How much it owes, and what it costs

Government debt in France is about 118% of GDP this year, on IMF estimates, 20 points higher than in 2019. The government is running a deficit of 5.4% of GDP: even before paying 2.5% of GDP in interest, it spends more than it collects. The IMF expects debt to rise to about 124% by 2031.

Measure	2019	2025	2026IMF estimate	2031IMF forecast
Government debt% of GDP, gross	98.2%	115.5%	118.5%	123.6%
Budget balance% of GDP, minus = deficit	−2.4%	−5.1%	−5.4%	−3.9%
Primary balancebudget before interest	−0.9%	−3.0%	−2.9%	−0.2%
Interest cost% of GDP, net	1.5%	2.1%	2.5%	3.7%

Credit ratings

A+S&P

Aa3Moody’s

A+Fitch

Long-term foreign-currency ratings, checked 25 October 2026. Moody’s kept France at Aa3 with a negative outlook on 23 October 2026. AAA is the highest grade; below BBB− is “high yield”.

2 · External position

What it earns and spends abroad

France runs a current account deficit of 0.7% of GDP (about $26bn): it spends more abroad than it earns, and relies on foreign investors to fund the gap.

Measure	2019	2025	2026IMF estimate	2007–26
Current account% of GDP	+0.6%	−0.4%	−0.7%
Current accountUS$ billions	+16	−13	−26

3 · Economy and markets

Growth, prices and borrowing costs

The IMF expects the economy to grow 0.4% this year in real terms, with inflation averaging 2.4%. Its 10-year borrowing cost, 4.85%, is above the economy’s nominal growth of roughly 2.8% (growth plus inflation). Over time, that makes debt harder to keep stable relative to GDP.

2.50%Policy rate · ECB deposit rate
24 Oct 2026

4.85%10-year yield · 10-year OAT
Oct 2026

3.8%Inflation, latest month · Euro area figure
Sep 2026

Measure	2025	2026IMF estimate	2027IMF forecast
Growthreal GDP, %	0.9%	0.4%	0.7%
Inflationaverage for the year, %	0.9%	2.4%	2.2%
Unemployment% of workforce	7.7%	8.4%	8.3%

In the news

France in the news

Newest first.

24 Oct 2026France’s borrowing premium hits its highest since the euro debt crisisThe 10-year spread over Germany reached about 147 bp on 5 October. Political deadlock and a 5.4% deficit have unsettled investors.Europe · France · Politics → Link 4 · Cause

Also relevant

Euro area stories

24 Oct 2026Investors rush into government bonds after an AI-led tech sell-offThe US 10-year yield had its biggest one-day fall in over two years on 22 October. German, French and UK yields also dropped.United States · Europe · Euro area · United Kingdom · Link 4 · Yields · In the chain

Mechanics

The mechanics behind it

Mechanic 05How government debt grows or shrinks Mechanic 02Why some governments pay more to borrow Mechanic 01How inflation, interest rates and bond yields fit together

Concepts

Terms on this page

Debt-to-GDP ratio Budget deficit Primary balance Credit rating Current account Government bond

More countries

Other country profiles

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Sources and notes

Government finances, current account, growth, inflation and unemployment: IMF World Economic Outlook and Fiscal Monitor, via the IMF DataMapper (checked 2026-10-24). The IMF publishes them in April and October.
2026 figures are IMF estimates, and later years are IMF forecasts. Earlier years are actual data, sometimes revised.
Debt is general government gross debt: central, regional and local government and social security. Interest cost is net interest, worked out as the primary balance minus the overall balance.
Credit ratings: long-term foreign-currency ratings from S&P Global, Moody’s and Fitch, checked on the date shown. Agencies can change them at any time.
Policy rates, 10-year yields, monthly inflation and exchange rates: as on The numbers page.