S&P downgraded France’s credit rating
International credit rating agency S&P downgraded France’s credit rating for the first time since 2013, citing a deterioration in the budget.
S&P reduced the credit rating of France, the second largest economy of the EU, from AA to AA-, the outlook is stable.
The deterioration in France’s budget position was cited as the reason for the decision.
It was noted in the statement that the ratio of France’s general public debt to GDP, which was at 109 percent last year, is expected to increase to 112.1 percent in 2027, and that France has the third highest ratio in the Eurozone after Greece and Italy in this field. It was stated that it was a country.
In the statement, it was stated that France’s 2023 budget deficit was significantly higher than previously estimated and reached 5.5 percent of GDP, and said: “The recovery in economic growth and the recently implemented economic and budgetary reforms will allow France to reduce the budget deficit.” “Even if we wait, we predict that the budget deficit will remain above 3 percent of GDP in 2027.” evaluation was made.
It was stated in the statement that the French economy is estimated to grow by 0.8 percent in 2024, and that the country’s economy is expected to recover starting from the second half of 2024 and grow at an average annual rate of 1.4 percent between 2025 and 2027.