Thursday, 20 January, 2022

EXCLUSIVE Coronavirus: the public deficit will jump to 3.9% of GDP this year


Gérald Darmanin, Minister of Action and Public Accounts, announces to “Echos” that the public deficit will jump to 3.9% of GDP this year, the consequence of a recession currently estimated at 1% and of the plan emergency provision tentatively at 45 billion euros. The debt will cross the 100% mark.

For Gérald Darmanin, the Minister of Public Accounts, France

“Whatever the cost”, warned Emmanuel Macron last week. The economic shock caused by the coronavirus crisis will lead to a spectacular deterioration in public accounts. The executive now expects a deficit of 3.9% of GDP at the end of the year, as Gerald Darmanin reveals to the “Echos”. “If I have always defended serious budgetary matters in peacetime, it is so that France does not have to skimp on resources in times of war”, explains the Minister of Action and Public Accounts.

This figure testifies to the violence of the economic shock. So far, the government has forecast a deficit of 2.2% of GDP at the end of the year. By comparison, the deficit stood at 3.2% at the end of 2008 three months after the financial crisis caused in September by the fall of Lehman Brothers, while the government at the time was forecasting 2.3% initially. The deterioration continued in 2009, with a deficit of 7.2%.

Gérald Darmanin, Minister of Action and Public Accounts, announces to “Echos” that the public deficit will jump to 3.9% of GDP this year, the consequence of a recession currently estimated at 1% and of the plan emergency provision tentatively at 45 billion euros. The debt will cross the 100% mark.

For Gérald Darmanin, the Minister of Public Accounts, France

“Whatever the cost”, warned Emmanuel Macron last week. The economic shock caused by the coronavirus crisis will lead to a spectacular deterioration in public accounts. The executive now expects a deficit of 3.9% of GDP at the end of the year, as Gerald Darmanin reveals to the “Echos”. “If I have always defended serious budgetary matters in peacetime, it is so that France does not have to skimp on resources in times of war”, explains the Minister of Action and Public Accounts.

This figure testifies to the violence of the economic shock. So far, the government has forecast a deficit of 2.2% of GDP at the end of the year. By comparison, the deficit stood at 3.2% at the end of 2008 three months after the financial crisis caused in September by the fall of Lehman Brothers, while the government at the time was forecasting 2.3% initially. The deterioration continued in 2009, with a deficit of 7.2%.