Balance of Payment France 2020

15,000
10,000
5,000
0,000

02

03

04

10

11
05

06

07

08

09

12
-5,000
-10,000
-15,000
-20,000
-25,000
(BoP): Current Account (CA) BoP: Capital Account (CAA) BoP: Financial Account (FA)

The graph above shows France's Balance of Payments in 2020. Overall, France's BoP in 2020 is in a
deficit position. It can be seen from the graph above that France's Current Account from the beginning
of 2020 experienced a deficit and showed a positive trend towards the end of 2020, this is the same as
the condition of the financial account which experienced a positive trend during 2020 despite high
fluctuations. On the other hand, France's Capital Account did not experience significant fluctuations
during 2020 and had a negative trend. It can be concluded from this graph that Financial accounts have
a significant influence on the position of the Balance of Payments France in 2020.

Balance of Payments (BoP): Current Account (CA)

(Million Euros)
4,000
2,000
0,000
0

-2,000
-4,000
-6,000
-8,000
-10,000

France's current account in 2020 from January to October experienced a deficit and had reached its
lowest point in May at a deficit of Eur 8,282,000 Mn. Furthermore, in November and December, France's
current account began to show a positive trend or current account surplus, reaching its highest point in
December of a surplus of 2,234,000 Eur Mn.
 BoP: CA: Goods
0
-101/ 02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/ 12/
-2
-3
-4
-5
-6
-7
-8
-9

If we look at one of the components of the current account, namely goods, it can be concluded that the
current account deficit in France 2020 is caused by imports of goods from other countries which exceed
exports of goods to other countries. The types of goods that are mostly imported by France are goods
that are included in the General Merchandise category, imports of General Marchandise goods reached
a deficit of Eur 9,560.00 Mn. goods that are included in the general merchandise category, such as basic
materials for clothing, furniture, etc. Because imports of goods exceed exports, from January to October
France's current account is in deficit. in the period November to December 2020 France's current
account experienced a surplus, one of which was caused by reduced imports of goods that were
included in the general merchandise category. This reduction occurred significantly, namely from
imports which initially reached Eur 9,560.00 Mn in December, the import was only at a deficit of Eur
858,000 Mn. The decrease in imports was caused by the exporting countries experiencing an economic
recession which caused the national production of the exporting countries to decrease and caused the
number of exports to France to also decrease.

BoP: CA: Services

5
4
3
2
1
0
01/ 02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/ 12/
-1
-2

Apart from goods, one of the main components of the current transaction is services. From the graph, it
can be seen that the services component in the France 2020 current account experienced a positive
trend. Only experienced a deficit in February 2020. The main cause of the deficit in February was the
sharp decline in income in the transport sector, namely the EUR 637,000 Mn deficit. This is because
February 2020 is the time when the new covid-19 pandemic spreads, this has caused all countries in the
world to carry out policies to anticipate the spread of covid-19, one of which is the implementation of a
lockdown which causes sharp activities in the transport sector. From May to December 2020, France's
current account services component experienced a significant increase again. The sector that
experienced the most significant increase was the transport and travel sector with a surplus of EUR
445,000 Mn and EUR 415,000 Mn. From the services component, it can also be concluded that the
transport and travel sector greatly influence France's current account.

BoP: Capital Account (CAA)

1,000
0,800
0,600
0,400
0,200
0,000
1 02 03 04 05 06 07 08 09 10 11 12
-0,200 0

In the capital account component, the capital account of the French state in 2020 experienced a
downward trend even though it was still in a surplus condition. Before the COVID-19 pandemic, in early
February 2020, France's capital account reached its highest point, which was a surplus of EUR 869,000
Mn. The spread of the covid-19 virus caused a significant decline in the Capital account which reached
its lowest point in the deficit figure of Eur 34,000 Mn in June 2020. The COVID-19 pandemic caused
uncertainty for the global economy, including the economy of France. Therefore, a lot of capital
outflows from France caused the capital account balance to experience a downward trend in 2020.

BoP: Financial Account (FA)

15
10
5
0
01/ 02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/ 12/
-5
-10
-15
-20
-25

In the graph above, we can see that there is a very high fluctuation in France's 2020 financial account.
France's financial account in 2020 is at a deficit of Eur 6,255,000 Mn. It can be seen from the graph that
before the covid-19 pandemic occurred, the financial account position was still at a surplus point,
namely a surplus of EUR 1,039,000 Mn in February 2020. The covid-19 pandemic caused a significant
decline in the financial account of France 2020. This can be seen from the financial account position
after the covid-19 pandemic which reached a deficit point of EUR 17,522,000 Mn in March 2020. The
main components in this financial account are direct investment and portfolio investment.

BoP: FA: Direct Investment (DI)

20

15

10

0
01/ 02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/ 12/
-5

-10

One of the main reasons for the downward trend that occurred in the France 2020 financial account was
a decline in the Direct Investment component. At the beginning of 2020 before the COVID-19 pandemic,
France's direct investment was at a surplus of Eur 10,157,000 Mn and after the COVID-19 pandemic,
there was a significant decline indirect investment, namely reaching a deficit of Eur 531,000 Mn at the
end of 2020.

BoP: FA: Portfolio Investment (PI)

150

100

50

0
01/ 02/ 03/ 04/ 05/ 06/ 07/ 08/ 09/ 10/ 11/ 12/
-50

-100...

-150...

In addition to the direct investment component, the significant decline that occurred in the France 2020
Financial account was also caused by a decline in portfolio investment. It can be seen from the graph,
before the covid-19 pandemic occurred, namely at the beginning of 2020 the investment portfolio was
in a surplus position of Eur 8,8154,000 Mn and at the end of 2020 when the Covid-19 pandemic spread,
France's investment portfolio was at a deficit point of Eur 31,420,000 Mn. . The significant decline that
occurred in direct investment and portfolio investment was due to almost all countries in the world
including France experiencing an economic recession. This economic recession caused a high risk of
investment so that the funds initially invested in France in the form of direct investment and portfolio
investment were withdrawn by investors to avoid losses from these investments.
https://www.ceicdata.com/en/france/bpm6-balance-of-payments-current-account/balance-of-
payment-bop-current-account-ca