Finance: France In The Top 10 Most Indebted Countries In The World

French public finance is under the spotlight as debt reaches historical heights. But where does the Hexagon actually stand compared to other nations?

A growing burden for Hexagon’s finances

French public debt has reached dizzying heights, nearing 3,2 trillion euros in the second quarter of 2024, about 112% of GDP. A situation rightly worrying experts and citizens alike. However, this raw figure doesn’t suffice to grasp the complex reality of global indebtedness.

In Europe, France ranks among the most indebted countries but doesn’t top this unenviable ranking. Greece (171.3% of GDP) and Italy (144.4%) show significantly higher ratios. Spain (113.2%) closely follows the Hexagon, while Germany (66.3%) appears as a good student.

It is crucial to note that these comparisons should be nuanced. Economic structure, growth, and the capacity to raise funds in the markets differ greatly from one country to another. France, despite its high debt, retains investors’ confidence thanks to the solidity of its economy and its status as a European power.

A global problem with multiple faces

Globally, the picture is even more contrasted. Japan holds the unenviable record of the most indebted country, with public debt reaching 262.5% of its GDP. The United States, the world’s largest economic power, also exhibits a higher debt ratio than France (129.3% of GDP).

Opposite to that spectrum, some emerging nations or raw materials exporters showcase particularly low debt levels. Russia (17.8% of GDP) and South Korea (51.3%) stand out as exceptions in a world where debt seems to become the norm.

However, these international comparisons should be handled with care. Calculation methods, economic structures, and political contexts vary considerably from one country to another, making direct comparisons sometimes misleading.

French debt, although concerning, is thus not an exception in the global economic landscape. It reflects global trends of rising public debt, accentuated by recent crises. The true challenge for France, as for many countries, will be to find a balance between managing this debt and maintaining sustainable economic growth.