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flag France France: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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 2009201020112012 (e)2013 (e)
GDP (billions USD) 2,631.852,562.742,808.272,888.912,970.27
GDP (Constant Prices, Annual % Change) -2.61.4e1.7e1.41.9
GDP per Capita (USD) 42,01840,70444,40145,46846,535
General Government Balance (in % of GDP) -4.8-4.6-3.8e-2.8-2.6
General Government Gross Debt (in % of GDP) 79.082.386.889.490.7
Inflation Rate (%) 0.11.7e2.11.41.7
Unemployment Rate (% of the Labor Force) 9.59.89.59.29.0
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

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) 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.

 
 
 
 
Learn more about Market Analysis about France on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
64.6/100
Position:
Moderately free
World Rank:
60/179
Regional Rank:
28/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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 20062007200820092010
Imports of Goods (million USD) 541,919630,862715,509560,081605,849
Exports of Goods (million USD) 495,868559,612615,870484,574520,524
Imports of Services (million USD) 112,134128,256140,324126,000125,663
Exports of Services (million USD) 127,688148,194165,351141,974139,994
Imports of Goods and Services (Annual % Change) 5.65.60.6-10.7-
Exports of Goods and Services (Annual % Change) 5.43.1---
Imports of Goods and Services (in % of GDP) 28.228.629.125.2-
Exports of Goods and Services (in % of GDP) 26.926.726.923.3-
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) 55.055.256.048.5-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 16.2%
Italy 8.1%
Belgium 7.5%
Spain 7.4%
United Kingdom 6.7%
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%
See More Countries 53.9%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Powered aircraft "e.g. helicopters and aeroplanes"...Powered aircraft "e.g. helicopters and aeroplanes"; spacecraft, incl. satellites, and suborbital and spacecraft launch vehicles 8.0%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 5.3%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.1%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.4%
See More Products 76.8%
Main Imports
(% of Imports)
2008
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 8.6%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.7%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.6%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.7%
See More Products 76.1%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
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
Euronext
Search Engines
Nomade
Voilà
Altavista
Aol.fr
Caloweb
C'est Trouvé
Excite.fr
La Boussole
Hotbot.fr
Lycos.fr
Bing
Netscape
Sharelook.fr
Economic Portals

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Political Outline

Executive Power
The President of the Republic is the Head of State. He is elected by direct universal suffrage for 5 years. He appoints the Prime Minister and his government at the suggestion of the Prime Minister. The Prime Minister sets the amount of the State's expenses and revenue, and prepares some bills.
Legislative Power
The parliament is composed of the Senate and the National Assembly. Senators are elected by indirect universal suffrage for 9 years renewable by a one-third majority vote every 3 years. The deputies (MPs) are elected by direct universal suffrage. They examine bills and private bills successively, vote laws and monitor the government.
Main Political Parties
The French Right is made up of the Union for a Popular Movement (UMP), the majority party, the Union for French Democracy (New UDF) and the Democratic Movement (MoDem) situated more to the Center and the National Front (FN) which is on the extreme right.
The Left brings together the Socialist Party (PS), the Greens (Ecologists), the French Communist Party (PCF) and various extreme left parties.
Current Political Leaders
President : Nicolas Sarkozy (since May 2007) - UMP
Prime Minister : François Fillon (since May 2007) - UMP
Next Election Dates
Presidential and Parliamentary elections: 2012
 

Indicator of Freedom of the Press

World Rank:
44/178
Evolution:
1 place down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012