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0 sats \ 1 reply \ @Lazy_AMA 1 May \ on: UK: When the Laffer Curve Becomes Reality Before Our Eyes econ
How be it that top tier countries like the UK and Framce are having Balance of payment deficits? How? These are economic giants and a role model for the tier 3 countries, and if the Top tiers struggle economically, what would the developing countries do¿?
Balance of payment deficits?
Some of the reason for France :
-High energy import costs, particularly for oil and gas. Even as global energy prices fell in 2023–2024, France's energy bill remained substantial, with the oil product deficit close to €40 billion in 2024.
-Structural weaknesses in French manufacturing competitiveness, leading to higher imports of intermediate and capital goods and relatively weaker export performance in certain sectors.
-The weakness of the euro, which increases the cost of imports priced in dollars, such as oil.
-France consistently runs a surplus in services trade, notably in tourism, travel, and financial services. For example, in 2023, the services surplus was €20 billion, driven by the travel industry and financial services. However, this surplus is not large enough to fully offset the goods deficit.
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