Is this not the message to catch from the evolution of the French payment account deficit?
The current account showed a minus €44 billion figure in 2012.
The deficit has contracted to €27 billion in 2013 .
Why do such data attract so few comments?
The Banque de France however states that “the current account includes trade in goods and services, primary income (related to ownership or production revenue) and secondary (transfers) […] between residents (financial intermediaries, businesses, households, governments, …) of an economy and non-residents (the rest of the world) during a given period. “
Could one misunderstand hat the country owes less to the rest of the world today than yesterday?
Isn’t the other component of the payment accounts that one that is an issue?
The capital account which includes – among others – lending to and borrowing from foreign counterparties displays € 151 billion of “new commitments” in 2013 in lieu of 33 billion € in 2012.
For what and for whom the need of such magnitude of new commitments?
Undoubtedly a question that deserves to be directed to the Bank de France …
Dominique F. Pasquier