Economic Trends/Outlook in France
The international financial crisis of 2009 led France into a recession, the French economy shrinking by 2.5%. The country has nonetheless resisted this development better than the eurozone average, thanks to a more diversified economy a more solid banking system, as well as a massive stimulus plan. The GDP improved in 2010, with a growth estimated at 1.6% which should remain on this low level throughout 2011. The recovery was essentially driven by the resumption of international trade.
In the perspective of the next year’s presidential election, the economic policy pursued by the Sarkozy administration is focused on reclaiming the disgruntled electorate. The government’s priority is the restoration of public finances through a policy of budgetary restraint. At the same time, measures to promote return to work, investment and exports will also continue to be pursued.
Due to the crisis, the unemployment rate, which is estimated at 10% in 2010, has reached its highest level in 10 years.
|GDP (billions USD)||2,656.41||2,582.53e||2,750.71e||2,834.35e||2,923.27e|
|GDP (Constant Prices, Annual % Change)||-2.5||1.5e||1.6e||1.8e||2.0e|
|GDP per Capita (USD)||42,410e||41,019e||43,491e||44,609e||45,799e|
|General Government Balance (in % of GDP)||-5.0e||-5.1e||-4.0e||-3.3e||-2.8e|
|General Government Gross Debt (in % of GDP)||78.1e||84.3e||87.6e||89.7e||90.3e|
|Inflation Rate (%)||0.1||1.7e||2.1e||1.7e||1.8e|
|Unemployment Rate (% of the Labor Force)||9.5e||9.7e||9.5e||9.1e||8.6e|
|Current Account (billions USD)||-38.84e||-51.42e||-50.37e||-46.03e||-|
|Current Account (in % of GDP)||-1.5e||-1.9e||-1.8e||-1.6e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
France is the biggest agricultural power in the European Union, accounting for a quarter of its total agricultural production, and the second agricultural power in the world after the United States. Nevertheless, the agricultural sector only represents a very small part of the country's GDP. It receives significant subsidies, especially from the European Union. Wheat, corn, meat and wine are France's main agricultural products.
France's manufacturing industry is varied, however, the country is in the middle of undergoing a de-industrialization process which translates into numerous relocations. The key industrial sectors in France are telecommunications, electronics, cars, aerospace and weapons.
The tertiary sector represents about three-fourths of the French GDP and employs almost 75% of the active workforce. France is the leading-tourist destination in the world with more than 75 million foreign tourists every year.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||3.0||23.1||72.9|
|Value Added (in % of GDP)||1.7||18.8||79.4|
|Value Added (Annual % Change)||3.4||-9.0||-0.9|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Moderately free
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministry of the Economy, Finance and Industry
Ministry of agriculture and fisheries
Ministry of small and medium enterprises, commerce, the craft industry and liberal professions
- Statistical Office
French Institute of Statistics (INSEE)
- Central Bank
The European Central Bank
The Bank of France
- Stock Exchange
- Other Useful Resources
Documentation center for Economy-Finance
- Main Online Newspapers
Le Monde (only in French)
Le Figaro (only in French)
Challenges (in French and English)
Libération (only in French)
Les Echos (only in French)
La Tribune (only in French)
Any Comments About This Content? Report It to Us.
Upset by the escalating uncertainty over sovereign debt crisis and subdued business and consumer confidence, the EU economy has lost steam in line with the uncertain global recovery.
Hong Kong Trade Development Council (HKTDC) on 1 Jul 2012 related to Economic Trends/Outlook in France
France is one of the largest civil and military aerospace markets in the world, home to Airbus, Dassault, Snecma, Eurocopter and, importantly, home to their complex supply-chains.
Foreign Agricultural Service on 5 Jun 2013 related to Economic Trends/Outlook in France
Find the related French companies with Kompass:
Part of USDA, the United StatesThe Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA) works to improve foreign market...
Government Trade Promotion, Hong Kong SAR