31 Dec 2009

French public debt hits new high

6:08 am on 31 December 2009

France's public debt has risen to a new high of 76% of economic output after additional state spending during the downturn.

The national statistics office (INSEE) said government debt stood at €1.46 trillion ($US2.1 trillion) at the end of September.

This was an increase of €29.4 billion since the end of June.

The BBC reports Government spending helped the French economy to emerge from recession between April and June. Lower tax receipts also contributed to rising debt levels.

The €1.46 trillion is the largest debt France has run since INSEE records started in 1995.

According to forecasts from the International Monetary Fund, French public debt as a percentage of economic output will hit 96% by 2014.

Of the G7 economies, this is less than Japan (246%), Italy (129%), the US (108%) and the UK (98%), but more than Germany (89%) and Canada (69%).