French Finance Ministry Expects Record Debt in 2026: Close to 120% of GDP

The French Finance Ministry has released its debt projection for 2026. The ministry forecasts that the debt stock will reach a record level, equivalent to nearly 120% of gross domestic product (GDP). This ratio marks the highest point in the country's debt burden historically. According to the statement, the main reason for the increase in the debt ratio is the financing need for budget deficits and limited economic growth. France's public finances remain under pressure amid increased post-pandemic spending and a low-growth environment. Market analysts note that the debt ratio approaching 120% could create upward pressure on the country's borrowing costs. French bond yields are closely watched for risk premium widening compared to other eurozone countries. Ministry officials emphasize the importance of structural reforms and fiscal discipline to bring debt dynamics under control. However, current projections indicate that the debt ratio will continue to remain high in the coming years. Not investment advice.