Against the backdrop of a massive global trade contraction, France’s current account deficit reached an exceptionally large EUR 43.7 billion, compared with EUR 7.1 billion in 2019.

• Despite a smaller energy bill, the goods deficit widened by EUR 13.3 billion, notably owing to a deterioration in external trade in the aerospace sector.
• The services surplus was particularly affected by the downturn in international tourism and narrowed by EUR 7.6 billion.
• In 2020, France’s largest bilateral trade deficit was with China, which replaced Germany in this regard.
• The fall in investment income caused the income balance to deteriorate by EUR 15.8 billion.

The financial account recorded net capital inflows of EUR 52.5 billion.

• The increase in the current account deficit was financed by a net increase in foreign liabilities.
• French net direct investment abroad amounted to EUR 40.3 billion.

The net international investment position deteriorated by EUR 78.7 billion.

• At end-2020, it stood at –EUR 695.5 billion, and following the sharp contraction in nominal GDP, it exceeded –30% of GDP, but was still below the alert threshold of –35% of GDP set by the European Macroeconomic Imbalance Procedure.
• With net purchases by the Banque de France resuming under Eurosystem programmes, the share of government debt securities held by foreign investors shrank from 55% at end-2019 to 52% at end-2020.