France's net external position falls to -29.6 percent of GDP
France's current account deficit widened slightly to EUR 11.6 billion in 2025, while its net international investment position deteriorated to a negative EUR 885.4 billion, or -29.6 percent of GDP. The Banque de France attributes the shift mainly to statistical adjustments rather than new borrowing.
Cheap energy papers over a widening trade gap
France's current account deficit widened to EUR 11.6 billion in 2025, up from EUR 9.3 billion in 2024, according to the Banque de France.
The trade in goods deficit narrowed to EUR 58.0 billion from EUR 61.4 billion, almost entirely due to a lower energy bill, which fell to EUR 44.2 billion from EUR 55.4 billion.
The trade in services surplus declined to EUR 45.4 billion from EUR 50.8 billion, while the non-energy goods deficit widened to EUR 15.9 billion from EUR 8.5 billion, as weaker agriculture and industrial exports were only partly offset by a strong transport equipment sector.
The income balance stayed close to equilibrium at EUR 1.0 billion, down slightly from EUR 1.4 billion in 2024.
Record outflows, a shakier balance sheet
France's net international investment position deteriorated to a negative EUR 885.4 billion, or -29.6 percent of GDP, from -24.0 percent in 2024, mainly due to statistical adjustments rather than valuation effects.
Net portfolio investment outflows reached a historically high EUR 133.4 billion, up from EUR 67.1 billion, while net direct investment outflows rose to EUR 31.2 billion from EUR 1.1 billion.
The share of French government debt securities held by non-residents climbed to 57.2 percent, from 55.8 percent in 2024, reinforcing the economy's reliance on foreign financing.
Stability is an illusion
The stable headline deficit is misleading: energy savings merely offset a deeper erosion in non-energy exports.
Much of the EUR 181 billion swing in the investment position stems from statistical reclassification rather than capital flight.
Yet rising foreign holdings of French debt confirm a structurally weakening external balance sheet.