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French Economic Markets and Structures- National Debt of the French Economy
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History of National Debt for France 
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Over the past three decades ranging from the early 80s, France has had a large increase in their national debt. Several factors such as a high unemployment rate, a shorter work week, and increased spending stretching to four times their annual state budget have contributed to an increase in the national debt. Currently, France has a debt of 66.6% of their GDP (Gross Domestic Product.) Today France is using approximately 89% of the income tax or 140% of its corporation tax to pay on the interest alone for the national debt. [1]
Percentage of national debt compared to GDP Edit
- Starting in 1985 France had a national debt equivalent to 37.9% of their GDP
- In 1990, the debt rose to 39.5%
- Beginning in 1995 France has a large increase of their national debt rising to 59.4% of their GDP
- Finally in 2000, the annual debt was up to 64.6% of the Gross Domestic Product. [2]
Since 1985 France has had a large decrease in their GDP growth. The national debt and percentage rate compared to the GDP has drastically increased shown in the graph below.
Total Government Bond Debt Edit
- Compared to seven of the top government bond debt countries, France is ranked as the second lowest country
- From 1985 to 1997 however, there was an increase of 6.5% of France’s government bond debt
- In contrast, the United States has had a decrease of 10.1% of government bond debt from 1985 to 1997. [4]
Current National Debt of France Edit
- Currently as of 2007, France has a national debt of 4.396 trillion dollars
- That is currently 66.6% of France’s GDP
- 4.396 trillion dollars is also approximately 12.35% of the world’s current debt as a whole
- Compared to the top ten countries with the highest national debt, France is ranked 4th. [6]
Debt Related to International Business Edit
As the national debt for France continues to increase, the economy of France is paying a high price. Although the unemployment rate is low it may appear that France is a good market for business now. However, as inflation increases along with the corporate tax rates, it will be very difficult for many companies to survive in a market like this with a drastic decrease in France’s GDP growth. Many views can be speculated about this, but the majority will agree that economy of France compared to its national debt is headed in a bad direction.
