unexpected tax revenues for the French State

With a 4.7% deficit in 2022, the French economy is doing better than expected. The deficit, lower than feared, does not however return to its pre-Covid levels. In 2022, activity picked up strongly. A company that manufactures compressors has experienced double-digit growth. After the pandemic, orders increased, while businesses were more resilient. Thus, they paid more corporate taxes.

France remains one of the most indebted European countries

With inflation, the VAT has increased, which is another good tax news for the state. In 2022, the debt represents 111% of national wealth, or 2,950 billion euros. However, this picture could darken. “We see a fairly clear drop in consumption”, says Mathieu Plane, economist at the OFCE. France remains one of the most indebted European countries. It is fifth, far ahead of Germany, which is thirteenth.