As of September 2024, this debt represents 113.7% of the country's GDP, a rise from 112.2% in June 2024, according to the National Institute of Statistics and Economic Studies (Insee).

Reflecting these economic challenges, Moody's downgraded France's sovereign credit rating from Aa2 to Aa3, citing increased political and economic uncertainties.

In the third quarter of 2024, France's public debt surged by €71.7 billion, reaching a total of €3,303 billion.

The state accounted for the majority of this increase, with its debt rising by €59.8 billion to €2,690.5 billion.

The French government is under pressure from rating agencies regarding its fiscal health, with warnings that failure to improve finances could lead to a further downgrade from AA- to A+.

The current public deficit is projected at 162.4 billion euros for 2024, equivalent to 6.2% of GDP, significantly higher than the anticipated 4.4%.

Despite these efforts, INSEE forecasts a bleak economic outlook for early 2025, with growth expectations revised down to 0.9% amid ongoing uncertainties.

Adding to the financial burden, the aftermath of Cyclone Chino, which devastated Mayotte on December 14, 2024, is being described as potentially the most severe natural disaster in France in centuries.

Looking ahead, the expected public deficit for 2025 is likely to be between 5.5% and 7% of GDP, necessitating increased borrowing.

To manage this financial strain, the Agence France Trésor plans to borrow a record €300 billion in 2025, which is €15 billion more than in 2024.

Political instability has intensified since President Emmanuel Macron dissolved the National Assembly in June 2024, contributing to ongoing economic uncertainty.

New Prime Minister François Bayrou is expected to present a new government before Christmas 2024, a move seen as crucial for passing the upcoming budget.