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The National Debt Of France Reached A Record Of €2,6 Trillion In Q2 2020

The National Debt Of France Reached A Record Of €2,6 Trillion In Q2 2020

The national debt of the second — largest European economy, France, grew by 200 billion euros in the second quarter, reaching 2.6 trillion euros or 114.1% of GDP, according to the National Institute of Statistics and Economic Research of France (Insee).

"This is 12.7 percentage points higher than last quarter, the strongest quarterly growth since statistics began in the fourth quarter of 1995," the organization points out.

The growth rate is marked for the second quarter in a row — at the end of 2019, the national debt of France was at 98.1% of GDP.

It's worth noting that the debt of Central authorities, local authorities, and social insurance funds increased during the quarter. Insee adds that the increase in debt was facilitated by a delay in paying taxes and a reduction in tax revenues due to a decrease in economic activity.

In August, Insee reported that GDP — in the second quarter of 2020, according to the final estimate, decreased by 13.8% compared to the first quarter. That was a record drop in the history of tracking the indicator.

At the end of Q2 2020, Maastricht’s debt reached €2,638.3 billion, a €199.9 billion increase in comparison to Q1 2020. It accounted for 114.1% of gross domestic product (GDP), 12.7 points higher than last quarter, the highest quartely increase since the beginning of the series in Q4 1995. Part of the increase in public debt in the second quarter fed the general government’s cash position, which increased sharply (€93.9 billion) ;It corresponds in part to future financing needs related to the health crisis. Net public debt increased more moderately (€105.8 billion) and stood at 100.3% of GDP.

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