Debt rates in France are among the highest among major euro zone countries

In the third quarter of 2023, household debt continues to decline, as do businesses in France. But it remains the highest in the euro zone’s largest countries, a publication from the Banque de France shows.

In the third quarter of 2023, the latest report published by the Banque de France on the debt rate of private non-financial agents shows a decrease once again compared to the previous quarter “thanks to the increase in GDP in value. USA Zone, Japan, Eurozone and UK”.

In detail, with respect to the euro zone, the private debt ratio for France fell by 1.1 pp (points of GDP), stabilizing at 140.8% of gross domestic product (GDP) against 141.9% in the previous quarter. As a reminder, it was 144.1% in the first quarter of 2023.

The average debt ratio of private non-financial agents in the euro zone is 110.5% of GDP. In the order of importance of the decrease recorded, during the third quarter of 2023, in the zone, the ratio decreased more in Spain with -3.1 pp, in Italy with -2.4 pp and in Germany with -1.8 pp.

The French household debt rate is 62.8% of GDP

This gives France the highest debt ratio among large euro zone countries, at 62.8% for both households (compared to 63.6% in the second quarter) and 78% for non-financial corporations (SNFs) (compared to 78.3% in the second quarter), the Banque de France reports. notes. Note that the average household debt ratio for the euro zone is 54.5% of GDP.

In this register, Italy has the lowest ratio in the euro zone with only 39% of household debt. The net debt of French NFCs, meaning their total debt less cash held, is also higher than other euro zone countries, but with smaller differences: 39.4% in France compared to 33.9% in Italy, 30.8% in Germany and 28.8% in Spain (EZ An average of 28.2%) is also reported in

Fixed Rate 111.7% for Public Administration

In terms of public administration debt, the rate for the euro zone, in the third quarter of 2023, decreased by 0.4 points compared to the previous quarter due to nominal GDP growth in the denominator, and remains at 89.9%, the report states. . This debt rate, stable at 111.7% in France, decreased further by 1.9 pp in Italy, by 1.4 pp in Spain and slightly increased by 0.1 pp in Germany.

Outside the euro zone, according to a report by the French financial institution, the rate of public debt fell more significantly in the United Kingdom (minus 1.1 pp) and in Japan (minus 3.9 pp). On the other hand, it increases by 1.5 pp in the United States.