[News] France heads to record public deficit over COVID-19: 'These figures can make you dizzy'

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                            France heads to record                            public deficit over COVID-19:          'These figures can make you dizzy'

 

The French government has revised upwards, to 11.4% of Gross Domestic Product, its public deficit forecasts for 2020, in the third draft budget rectification which is currently being prepared to deal with the economic and economic consequences. the French finance minister, Gerald Darmanin, told Reuters on Thursday, according to agerpres.ro, the public finances of the health crisis.

 

"With an 11% contraction in the economy, we currently expect a deficit of 11.4%. We have never had such a figure in France," Gerald Darmanin told France 2.

According to the latest government forecasts, the public deficit for this year was to be 9.1% of GDP, while in the draft finance law for 2020 enacted at the end of December 2019, the public deficit was projected at 2.2% of GDP.

Gerald Darmanin also said that France's public debt will increase more than expected so far, ie 115% of GDP, without providing a precise figure. The state budget deficit will reach 220 billion euros this year and the social insurance deficit to over 52 billion euros. Last year, France's public deficit was 3% of GDP and the debt reached 98.1% of GDP.
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"These figures can make you dizzy, but we see an economic recovery taking place with the end of isolation," Darmanin said. He stressed in particular that the value added tax revenues "are starting to re-enter the state budget because people have started consuming more".

On Tuesday, Economy Minister Bruno Le Maire said the French economy would contract by 11% this year, an unprecedented level after World War II, compared to a previously estimated 8% drop.

These new forecasts will be included in the third draft budget correction to be presented to the cabinet next week. This rectification will also include measures announced in the various plans to support the economic sectors affected by the crisis (tourism, automotive, aeronautics, etc.).