France current account deficit largest in 10 months

France's current account deficit widened to EUR 1.9 billion in February 2025 from a downwardly revised EUR 1.3 billion in the previous month. This marked the largest current account deficit since April 2024, as the goods account shortfall increased notably to EUR 6.4 billion from EUR 5.8 billion in January 2025, reflecting a rise in imports amid resilient domestic demand and slightly weaker exports in key sectors such as automotive and aerospace.

France current account deficit largest in 10 months

On the other hand, the services account surplus went up slightly to EUR 4.1 billion from EUR 4 billion, supported by solid performance in travel, transport, and IT services. In addition, the primary income surplus—largely driven by earnings from investments abroad—remained unchanged at EUR 4.3 billion in February 2025, suggesting continued strength in French overseas asset income. The secondary income deficit, which includes transfers such as remittances and contributions to the EU budget, also remained steady at EUR 3.9 billion.

France's challenges

Despite some resilience in non-goods components, the widening overall deficit underscores the challenges France faces amid a sluggish eurozone economy and ongoing global trade frictions. Economists caution that persistent current account imbalances could add pressure to the euro and complicate fiscal planning, particularly if external demand weakens further in the months ahead.