France: the public deficit “close to 7%” in 2021, according to Olivier Dussopt

Europe 1 with AFP 1:56 p.m., January 16, 2022

France's public deficit will finally be "close to 7%" of gross domestic product (GDP) in 2021, the Minister of Public Accounts told the Journal du Dimanche, while the government was still counting on 8.2% the year. last. This improvement is due to “larger than expected tax revenues” linked to stronger growth than previously estimated and the recovery of social security accounts “thanks to the recovery in employment and the receipt of contributions”, explained the minister.

At the beginning of January, the Minister of the Economy Bruno Le Maire had already judged that the budget deficit for 2021 would be "significantly less than 8%" of GDP.

Olivier Dussopt recalls that according to the latest INSEE forecast, growth should reach 6.7% in 2021, against 6.25% according to the government forecast, which dates back to September.

The objective of a 5% deficit in 2022 

The social security deficit, "from 40 billion euros in 2020, would drop in 2021 to around 25 billion. We were expecting nearly 33 billion", explains the minister.

The state deficit would amount to 171 billion euros, or "nearly 34.5 billion less compared to our latest forecasts", still welcomed Olivier Dussopt.

"All these movements confirm our deficit forecasts at 5% in 2022, then at 3% in 2027", he added, specifying that the rise in interest rates does not call into question the objective of 5 % deficit for this year.