France posted a current account surplus of EUR 2.4 billion in December 2024, a notable turnaround from a downwardly revised EUR 1.2 billion deficit in the previous month.
France current account swings to surplus
This marked the first current account surplus since July, driven by improvements in both the goods and services accounts. Specifically, the goods account deficit narrowed significantly to EUR 0.9 billion from EUR 4.5 billion in November, reflecting a stronger export performance or reduced import demand. Meanwhile, the services account surplus increased slightly to EUR 3.7 billion, up from EUR 3.6 billion in the previous month, indicating a stable demand for French services abroad, particularly in areas like travel and financial services.
Primary income surplus falls
On the income side, the primary income surplus, which includes earnings from investments and wages, fell slightly to EUR 3.96 billion from EUR 3.99 billion in November. This decrease was marginal and suggests that income flows remained largely stable. However, the secondary income deficit widened to EUR 12.1 billion from EUR 11.5 billion, largely due to increased transfers, including those related to international aid or EU budget contributions. Overall, the shift to a current account surplus in December reflects a temporary improvement in France’s external balance, with mixed performance across different income and trade categories.
