S&P Downgrades France's Credit Rating Due To Budget Deficit

  • Paris, France
  • 3 June 2024
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S&P downgraded France's sovereign credit rating from AA to AA, the first of its kind since 2013, which the US agency attributed to France's "deteriorating budget situation."

According to S&P Global Ratings, "France's budget deficit in 2023 was much higher than expected." The agency estimated that the post-2027 budget deficit would remain above the 3 percent threshold of GDP.

The French government expects the public debt ratio to fall below 3 percent of GDP by 2027, but S&P said these figures are not realistic, as the French public deficit in 2027 will be at 3.5 percent of GDP.

Source (Al-Sharq Al-Awsat Newspaper, Edited)

 

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