The Bank of France published its annual balance of payments results, reporting that France’s current account balance improved markedly in 2024 and shifted back to a surplus of EUR 2.7bn, reflecting both a reduced goods trade deficit and a larger services surplus. The goods trade deficit narrowed to EUR 60.0bn from EUR 78.3bn in 2023, mainly due to a sharp fall in the energy bill of EUR 13.3bn and, to a lesser extent, a recovery in industrial goods exports, notably pharmaceuticals and metallurgy. The services surplus rebounded to EUR 56.5bn from EUR 39.5bn, with most of the improvement coming from business services and insurance, alongside higher surpluses in transport and travel. The income surplus edged down to EUR 6.1bn as the previously favourable gap between apparent interest rates on external assets and liabilities narrowed. France’s net international investment position stood at -22.9 percentage points of GDP, combining a surplus in direct investment with substantial net portfolio debt, particularly in public securities, which the report notes increases vulnerability to foreign financing; it adds that early effects of a US protectionist shift are not yet visible in first-quarter 2025 data, while geopolitical and trade tensions could weigh on global activity from 2025.
Bank of France 2025-07-10
Bank of France annual balance of payments report shows France returned to a EUR 2.7bn current account surplus in 2024
The Bank of France reported a shift to a EUR 2.7 billion current account surplus in 2024, driven by a reduced goods trade deficit and a larger services surplus. The goods deficit narrowed due to a lower energy bill and recovering industrial goods exports, while the services surplus improved in business services and insurance. France's net international investment position remains vulnerable due to substantial net portfolio debt, particularly in public securities.