France: The questionable uses of the rise in household and corporate debt

France is one of the rare OECD countries where household and corporate debt ratios continue to rise. Is this good news or a concern? The concern is that the efficiency of the use of th is increase in private sector debt in France is questionable : With regard to households, the increase in debt has been accompanied since 2018 by an increase in real estate prices and not by an increase in housing investment in volume terms; With regard to companies, the debt has been accompanied not only by an increase in investment but also by an increase in cash holdings and acquisitions. So it is not certain that France’s credit growth should be welcomed.