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French debt held by foreign investors

2024-03-26T17:05:33.056Z

Highlights: French debt held by foreign investors. At the end of the third quarter of 2023, the amount of securities held by investors outside France stood at 53%. Despite a deficit of 5.5%, the debt to gross domestic product (GDP) ratio decreased in 2023. It is inflation which explains this slight " counterintuitive improvement" In volume terms, however, the debt will inevitably increase. To finance the future deficit, the State has in fact planned to raise the record amount of 285 billion euros on the markets this year.


At the end of the third quarter of 2023, the amount of securities held by investors outside France stood at 53%.


Despite a deficit of 5.5%, the debt to gross domestic product (GDP) ratio decreased in 2023. It reached 110.6% after 111.9% at the end of 2022. It is inflation which explains this slight " counterintuitive improvement.

Price increases tend, in the short term, to reduce the value of debts.

This general law also applies to States: given the long maturity of the French debt, around 8.5 years, its apparent interest rate increases slowly, while the value of GDP is mechanically inflated by the increases. of price.

The fall in inflation should, however, gradually extinguish this effect.

According to the finance law, Bercy economists are banking on a simple stabilization of the debt ratio between the end of 2023 and the end of 2024.

In volume terms, however, the debt will inevitably increase.

To finance the future deficit, the State has in fact planned to raise the record amount of 285 billion euros on the markets this year, compared to 200 billion euros in 2019...

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Source: lefigaro

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