French current account deficit widens in September

15th November 2010, Comments 0 comments

France's September current balance of payments, a key measure of payments into and out of a country, showed an increased deficit of 4.4 billion euros (6.0 billion dollars), official data showed Monday.

In the 12 months to the end of September, the balance showed a cumulative deficit of 39 billion euros, on an unadjusted basis.

The data for September, from the Bank of France, was provided on an adjusted basis. The figure for August was revised up to 4.3 billion euros from 4.0 billion.

The balance of payments is considered an important indicator because it captures all current payments in and out across the national frontiers, giving a broad picture of the ability of a country in the long term to fund its current payments abroad.

Economists have commented for some time that France has switched into structural deficits on its balance of payments on current account, and on its trade balance.

Controversy has risen in recent months because the other leading economy in the eurozone, Germany, has a strong and increasing surplus on payments for trade, one of the main components of the current account.

© 2010 AFP

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