France Economy Profile 2009

Economy - overview

France is in the midst of transition from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The government has partially or fully privatized many large companies, banks, and insurers, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. Widespread opposition to labor reform has in recent years hampered the government's ability to revitalize the economy. During 2007-08, the government implemented several important labor reforms, including a de facto extension of the 35-hour workweek by allowing employees to work longer overtime hours. During 2009, the government is expected to delay or even renounce other reform efforts due to the on-going financial crisis. GDP growth dropped to 0.3% in 2008; the French government plans to increase public investment and continue injecting capital into the banking sector to alleviate the negative effects of the crisis during 2009. As a result of lower fiscal revenues and increased expenditures the general government deficit is expected to exceed the euro-zone ceiling 3% of GDP. France's tax burden remains one of the highest in Europe - at nearly 50% of GDP in 2005. With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.

GDP (purchasing power parity)

$2.128 trillion (2008 est.)
$2.121 trillion (2007 est.)
$2.074 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$2.866 trillion (2008 est.)

GDP - real growth rate

0.3% (2008 est.)
2.3% (2007 est.)
2.4% (2006 est.)

GDP - per capita (PPP)

$33,200 (2008 est.)
$33,300 (2007 est.)
$32,800 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2%
industry: 20.4%
services: 77.6% (2008 est.)

Population below poverty line

6.2% (2004)

Labor force

27.97 million (2008 est.)

Labor force - by occupation

agriculture: 3.8%
industry: 24.3%
services: 71.8% (2005)

Unemployment rate

7.4% (2008 est.)
7.9% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 24.8% (2004)

Distribution of family income - Gini index

32.7 (2008)
32.7 (1995)

Investment (gross fixed)

21.9% of GDP (2008 est.)

Budget

revenues: $1.407 trillion
expenditures: $1.506 trillion (2008 est.)

Public debt

68.1% of GDP (2008 est.)
67.7% of GDP (2004 est.)

Inflation rate (consumer prices)

2.8% (2008 est.)
1.5% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Commercial bank prime lending rate

6.6% (2008)

Stock of money

$NA

note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of quasi money

$NA

Stock of domestic credit

$3.422 trillion (31 December 2008)
$3.397 trillion (31 December 2007)

Industries

machinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourism

Industrial production growth rate

-1.8% (2008 est.)

Electricity - production

570 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 8.2%
hydro: 14%
nuclear: 77.1%
other: 0.7% (2001)

Electricity - consumption

480 billion kWh (2007 est.)

Electricity - exports

67.6 billion kWh (2007)

Electricity - imports

10.8 billion kWh (2007)

Oil - production

71,400 bbl/day (2007)

Oil - consumption

1.95 million bbl/day (2007)

Oil - imports

2.465 million bbl/day (2005)

Oil - exports

584,700 bbl/day (2005)

Oil - proved reserves

122 million bbl (1 January 2008 est.)

Natural gas - production

953 million cu m (2007 est.)

Natural gas - consumption

42.69 billion cu m (2007 est.)

Natural gas - exports

966 million cu m (2007 est.)

Natural gas - imports

42.9 billion cu m (2007 est.)

Natural gas - proved reserves

7.277 billion cu m (1 January 2008 est.)

Current Account Balance

-$52.91 billion (2008 est.)
-$31.25 billion (2007 est.)

Agriculture - products

wheat, cereals, sugar beets, potatoes, wine grapes; beef, dairy products; fish

Exports

$601.9 billion (2008 est.)
$546 billion (2007 est.)

Exports - commodities

machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages

Exports - partners

Germany 14.3%, Italy 8.7%, Spain 8.3%, UK 7.8%, Belgium 7.6%, US 5.8%, Netherlands 4.2% (2008)

Imports

$692 billion (2008 est.)
$600.9 billion (2007 est.)

Imports - commodities

machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals

Imports - partners

Germany 17.9%, Belgium 11.7%, Italy 8.3%, Spain 6.9%, Netherlands 6.8%, UK 5.1%, US 4.3% (2008)

Reserves of foreign exchange and gold

$102.9 billion (31 December 2008 est.)
$115.7 billion (31 December 2007 est.)

Debt - external

$5.002 trillion (31 December 2008)
$4.88 trillion (31 December 2007)

Stock of direct foreign investment - at home

$1.147 trillion (31 December 2008 est.)
$1.026 trillion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$1.624 trillion (31 December 2008 est.)
$1.399 trillion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$2.771 trillion (31 December 2007)
$2.429 trillion (31 December 2006)

Economic aid - donor

ODA, $10.6 billion (2006)

Currency (code)

euro (EUR)

Currency (code)

EUR

Exchange rates

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year

calendar year