France's Public Sector Deficit Narrower than Expected

France's budget deficit widened to 5.8% of GDP in 2024, less than the expected 6%. Public debt rose to 113.0% of GDP. The government aims to reduce the deficit to 5.4% and align with the EU's 3% ceiling by 2029.

France's budget deficit for 2024 widened to 5.8% of GDP, according to latest data from the statistics agency INSEE. The figure, although above 2023's 5.4%, is an improvement from the government's earlier estimate of 6%.

This unexpected result comes amid heightened government spending and lower-than-expected tax revenues, forcing repeated revisions of deficit expectations. Aiming to comply with the European Union's 3% deficit cap by 2029, the government plans to cut the 2024 deficit to 5.4% of economic output.

The report also indicated that France's public debt rose to 113.0% of GDP in 2024, surpassing last year's 109.8% while remaining slightly above the projected 112.7% for 2024.

(With inputs from agencies.)