France News: Macron crisis as debt reaches 116% of GDP | World | News

0
14
 France News: Macron crisis as debt reaches 116% of GDP |  World |  News


According to the National Institute of Statistics and Economic Studies (INSEE) in France, public debt due to the virus soared last year to 115.7% of gross domestic product (GDP). The institute found that the deficit widened to 9.2%, the highest level since World War II.

Before the crisis, France’s debt stood at 97.6% of GDP and the deficit at around 3.1%.
However, the pandemic plunged the country’s economy into an 8.2% recession.

Mr Macron’s government has been pushed to support the economy in a bid to avoid job cuts and business bankruptcies due to the pandemic.

INSEE has warned that spending growth and “income contraction” are more pronounced than in 2009 during the financial crisis.

They added: “The revenues had then decreased by 3% and the expenses had increased by 4.1% for a deficit of 7.2%”.
According to INSEE, the general government deficit for last year amounted to 211.5 billion euros, or 9.2% of GDP.

This was a staggering increase from 3.1% of GDP the previous year.

The French government is believed to be planning to reduce the public deficit to 8.5% of GDP.

READ MORE: EU vaccine row: EU doesn’t use 41% of AZ vaccines

“Macron will need an economic miracle and a lot of luck with the pandemic to keep his crown and keep France out of Le Pen’s hands. ”

Figures from the International Monetary Fund (IMF) revealed that France’s debt is now lower than that of the British Brexit, which stood at 111.5%.

In February, UK spending to fight the pandemic pushed public finances £ 19 billion further into the red.

The Office for National Statistics (ONS) found that Britain’s borrowing in February was £ 17.6 billion more than the year before.

It was the highest borrowing in February since monthly surveys began in 1993.

Last year Chancellor Rishi Sunak warned “hard times are here” as the UK economy collapsed in the worst recession on record.

In August, Mr. Sunak said, “I have said before that hard times are ahead, and today’s numbers confirm that hard times are here.

“Hundreds of thousands of people have already lost their jobs, and unfortunately, in the months to come, many more will.

“But while there are tough choices to be made in the future, we will get there, and I can assure people that no one will be left without hope and opportunity. ”

It was the first time in 11 years that the UK had entered a recession.

Additional reporting by Maria Ortega

LEAVE A REPLY

Please enter your comment!
Please enter your name here