France: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
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.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 2,631.85 | 2,562.74 | 2,808.27 | 2,888.91 | 2,970.27 |
| GDP (Constant Prices, Annual % Change) | -2.6 | 1.4e | 1.7e | 1.4 | 1.9 |
| GDP per Capita (USD) | 42,018 | 40,704 | 44,401 | 45,468 | 46,535 |
| General Government Balance (in % of GDP) | -4.8 | -4.6 | -3.8e | -2.8 | -2.6 |
| General Government Gross Debt (in % of GDP) | 79.0 | 82.3 | 86.8 | 89.4 | 90.7 |
| Inflation Rate (%) | 0.1 | 1.7e | 2.1 | 1.4 | 1.7 |
| Unemployment Rate (% of the Labor Force) | 9.5 | 9.8 | 9.5 | 9.2 | 9.0 |
| Current Account (billions USD) | -39.56 | -44.66 | -74.77 | -72.17 | -75.49 |
| Current Account (in % of GDP) | -1.5 | -1.7e | -2.7 | -2.5 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
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) | 2.9 | 22.5 | 74.1 |
| Value Added (in % of GDP) | 1.8 | 19.0 | 79.2 |
| Value Added (Annual % Change) | 3.4 | -9.0 | -1.0 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
France is one of the 10 leading exporters in the world, exports accounting for more than 50% of the country's GDP.
However, the country registers a strong trade deficit. Imports are developing quickly, as the French population buys a lot of imported goods which are sold relatively cheaply on the local market in comparison to products "Made in France". In addition to this, despite the government's efforts to favor innovation, French exports have relatively low added value.
In 2009, under the effects of the economic recession, both exports and imports devreased. Exports, however, rebounded in 2010 with the resumption of Asian trade, and imports have risen dramatically in response to the upturn in activity.
France's main trade partners are the European Union, the United States and China.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 541,919 | 630,862 | 715,509 | 560,081 | 605,849 |
| Exports of Goods (million USD) | 495,868 | 559,612 | 615,870 | 484,574 | 520,524 |
| Imports of Services (million USD) | 112,134 | 128,256 | 140,324 | 126,000 | 125,663 |
| Exports of Services (million USD) | 127,688 | 148,194 | 165,351 | 141,974 | 139,994 |
| Imports of Goods and Services (Annual % Change) | 5.6 | 5.6 | 0.6 | -10.7 | - |
| Exports of Goods and Services (Annual % Change) | 5.4 | 3.1 | - | - | - |
| Imports of Goods and Services (in % of GDP) | 28.2 | 28.6 | 29.1 | 25.2 | - |
| Exports of Goods and Services (in % of GDP) | 26.9 | 26.7 | 26.9 | 23.3 | - |
| Trade Balance (million USD) | -38,123 | -56,808 | -87,277 | -59,942 | -71,210 |
| Trade Balance (Including Service) (million USD) | -22,590 | -37,084 | -62,815 | -45,629 | -58,450 |
| Foreign Trade (in % of GDP) | 55.0 | 55.2 | 56.0 | 48.5 | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| Germany | 16.2% |
| Italy | 8.1% |
| Belgium | 7.5% |
| Spain | 7.4% |
| United Kingdom | 6.7% |
| United States | 5.7% |
| Netherlands | 4.2% |
| Switzerland | 2.9% |
| China | 2.8% |
| Russia | 1.6% |
| Turkey | 1.6% |
| Poland | 1.5% |
| Japan | 1.5% |
| Algeria | 1.4% |
| Sweden | 1.3% |
| Singapore | 1.3% |
| Hong Kong | 1.1% |
| Portugal | 1.1% |
| Morocco | 1.0% |
| Saudi Arabia | 1.0% |
| See More Countries | 54.0% |
| Main Suppliers (% of Imports) |
2008 |
| Germany | 16.4% |
| Belgium | 8.5% |
| Italy | 8.1% |
| China | 6.5% |
| Spain | 6.5% |
| United States | 5.5% |
| United Kingdom | 4.8% |
| Netherlands | 4.1% |
| Russia | 2.9% |
| Switzerland | 2.3% |
| Japan | 2.0% |
| Norway | 1.8% |
| Poland | 1.4% |
| Sweden | 1.3% |
| Ireland | 1.3% |
| Turkey | 1.1% |
France This flow is explained by the way local Customs Authorities report trade with overseas or special territories (e.g. Hong Kong or Taiwan in the case of China, French West Indies in the case of France, etc) as well as the treatment of re-imported (or re-exported) products, which get out (or enter) of the country for a limited time, with the intention of being re-imported (or re-exported) without significant transformation overseas.
|
1.0% |
| Algeria | 1.0% |
| Czech Republic | 1.0% |
| Portugal | 0.9% |
| See More Countries | 53.9% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012
