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France vs. Belgium

Economy

FranceBelgium
Economy - overview

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. France is the most visited country in the world with 89 million foreign tourists in 2017. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality.

France's real GDP grew by 1.9% in 2017, up from 1.2% the year before. The unemployment rate (including overseas territories) increased from 7.8% in 2008 to 10.2% in 2015, before falling to 9.0% in 2017. Youth unemployment in metropolitan France decreased from 24.6% in the fourth quarter of 2014 to 20.6% in the fourth quarter of 2017.

France's public finances have historically been strained by high spending and low growth. In 2017, the budget deficit improved to 2.7% of GDP, bringing it in compliance with the EU-mandated 3% deficit target. Meanwhile, France's public debt rose from 89.5% of GDP in 2012 to 97% in 2017.

Since entering office in May 2017, President Emmanuel MACRON launched a series of economic reforms to improve competitiveness and boost economic growth. President MACRON campaigned on reforming France's labor code and in late 2017 implemented a range of reforms to increase flexibility in the labor market by making it easier for firms to hire and fire and simplifying negotiations between employers and employees. In addition to labor reforms, President MACRON's 2018 budget cuts public spending, taxes, and social security contributions to spur private investment and increase purchasing power. The government plans to gradually reduce corporate tax rate for businesses from 33.3% to 25% by 2022.

Belgium's central geographic location and highly developed transport network have helped develop a well-diversified economy, with a broad mix of transport, services, manufacturing, and high tech. Service and high-tech industries are concentrated in the northern Flanders region while the southern region of Wallonia is home to industries like coal and steel manufacturing. Belgium is completely reliant on foreign sources of fossil fuels, and the planned closure of its seven nuclear plants by 2025 should increase its dependence on foreign energy. Its role as a regional logistical hub makes its economy vulnerable to shifts in foreign demand, particularly with EU trading partners. Roughly three-quarters of Belgium's trade is with other EU countries, and the port of Zeebrugge conducts almost half its trade with the United Kingdom alone, leaving Belgium's economy vulnerable to the outcome of negotiations on the UK's exit from the EU.

Belgium's GDP grew by 1.7% in 2017 and the budget deficit was 1.5% of GDP. Unemployment stood at 7.3%, however the unemployment rate is lower in Flanders than Wallonia, 4.4% compared to 9.4%, because of industrial differences between the regions. The economy largely recovered from the March 2016 terrorist attacks that mainly impacted the Brussels region tourist and hospitality industry. Prime Minister Charles MICHEL's center-right government has pledged to further reduce the deficit in response to EU pressure to decrease Belgium's high public debt of about 104% of GDP, but such efforts would also dampen economic growth. In addition to restrained public spending, low wage growth and higher inflation promise to curtail a more robust recovery in private consumption.

The government has pledged to pursue a reform program to improve Belgium's competitiveness, including changes to labor market rules and welfare benefits. These changes have generally made Belgian wages more competitive regionally, but have raised tensions with trade unions, which have called for extended strikes. In 2017, Belgium approved a tax reform plan to ease corporate rates from 33% to 29% by 2018 and down to 25% by 2020. The tax plan also included benefits for innovation and SMEs, intended to spur competitiveness and private investment.

GDP (purchasing power parity)$3,097,061,000,000 (2019 est.)

$3,051,034,000,000 (2018 est.)

$2,997,296,000,000 (2017 est.)

note: data are in 2010 dollars
$596.414 billion (2019 est.)

$586.192 billion (2018 est.)

$575.757 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate1.49% (2019 est.)

1.81% (2018 est.)

2.42% (2017 est.)
1.41% (2019 est.)

1.49% (2018 est.)

1.9% (2017 est.)
GDP - per capita (PPP)$46,184 (2019 est.)

$45,561 (2018 est.)

$44,827 (2017 est.)

note: data are in 2010 dollars
$51,934 (2019 est.)

$51,299 (2018 est.)

$50,615 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 1.7% (2017 est.)

industry: 19.5% (2017 est.)

services: 78.8% (2017 est.)
agriculture: 0.7% (2017 est.)

industry: 22.1% (2017 est.)

services: 77.2% (2017 est.)
Population below poverty line13.6% (2018 est.)14.8% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 3.6%

highest 10%: 25.4% (2013)
lowest 10%: 3.4%

highest 10%: 28.4% (2006)
Inflation rate (consumer prices)1.1% (2019 est.)

1.8% (2018 est.)

1% (2017 est.)
1.4% (2019 est.)

2% (2018 est.)

2.1% (2017 est.)
Labor force27.742 million (2020 est.)4.122 million (2020 est.)
Labor force - by occupationagriculture: 2.8% (2016 est.)

industry: 20% (2016 est.)

services: 77.2% (2016 est.)
agriculture: 1.3%

industry: 18.6%

services: 80.1% (2013 est.)
Unemployment rate8.12% (2019 est.)

8.69% (2018 est.)

note: includes overseas territories
5.36% (2019 est.)

5.96% (2018 est.)
Distribution of family income - Gini index31.6 (2017 est.)

29.2 (2015)
27.4 (2017 est.)

28.7 (1996)
Budgetrevenues: 1.392 trillion (2017 est.)

expenditures: 1.459 trillion (2017 est.)
revenues: 253.5 billion (2017 est.)

expenditures: 258.6 billion (2017 est.)
Industriesmachinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourismengineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, pharmaceuticals, base metals, textiles, glass, petroleum
Industrial production growth rate2% (2017 est.)0.2% (2017 est.)
Agriculture - productswheat, sugar beet, milk, barley, maize, potatoes, grapes, rapeseed, pork, applessugar beet, milk, potatoes, wheat, pork, lettuce, poultry, maize, barley, pears
Exports$969.077 billion (2019 est.)

$952.316 billion (2018 est.)

$910.613 billion (2017 est.)
$474.278 billion (2019 est.)

$469.48 billion (2018 est.)

$466.732 billion (2017 est.)
Exports - commoditiesaircraft, packaged medicines, cars and vehicle parts, gas turbines, wine (2019)cars and vehicle parts, refined petroleum, packaged medicines, medical cultures/vaccines, diamonds, natural gas (2019)
Exports - partnersGermany 14%, United States 8%, Italy 7%, Spain 7%, Belgium 7%, United Kingdom 7% (2019)Germany 17%, France 14%, Netherlands 13%, United Kingdom 8%, United States 6%, Italy 5% (2019)
Imports$1,021,633,000,000 (2019 est.)

$995.937 billion (2018 est.)

$965.949 billion (2017 est.)
$473.129 billion (2019 est.)

$469.546 billion (2018 est.)

$463.706 billion (2017 est.)
Imports - commoditiescars, crude petroleum, refined petroleum, packaged medicines, aircraft machinery (2019)cars, refined petroleum, packaged medicines, medical cultures/vaccines, diamonds, natural gas (2019)
Imports - partnersGermany 18%, Belgium 9%, Italy 9%, Spain 7%, China 7%, Netherlands 6%, United Kingdom 5% (2019)Netherlands 16%, Germany 13%, France 10%, United States 8%, Ireland 5%, China 5% (2019)
Debt - external$6,356,459,000,000 (2019 est.)

$6,058,438,000,000 (2018 est.)
$1,317,513,000,000 (2019 est.)

$1,332,358,000,000 (2018 est.)
Exchange rateseuros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt96.8% of GDP (2017 est.)

96.6% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
103.4% of GDP (2017 est.)

106% of GDP (2016 est.)

note: data cover general government debt and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions; general government debt is defined by the Maastricht definition and calculated by the National Bank of Belgium as consolidated gross debt; the debt is defined in European Regulation EC479/2009 concerning the implementation of the protocol on the excessive deficit procedure annexed to the Treaty on European Union (Treaty of Maastricht) of 7 February 1992; the sub-sectors of consolidated gross debt are: federal government, communities and regions, local government, and social security funds
Reserves of foreign exchange and gold$156.4 billion (31 December 2017 est.)

$138.2 billion (31 December 2015 est.)
$26.16 billion (31 December 2017 est.)

$24.1 billion (31 December 2015 est.)
Current Account Balance-$18.102 billion (2019 est.)

-$16.02 billion (2018 est.)
$1.843 billion (2019 est.)

-$4.135 billion (2018 est.)
GDP (official exchange rate)$2,715,574,000,000 (2019 est.)$533.028 billion (2019 est.)
Credit ratingsFitch rating: AA (2014)

Moody's rating: Aa2 (2015)

Standard & Poors rating: AA (2013)
Fitch rating: AA- (2016)

Moody's rating: Aa3 (2011)

Standard & Poors rating: AA (2011)
Ease of Doing Business Index scoresOverall score: 76.8 (2020)

Starting a Business score: 93.1 (2020)

Trading score: 100 (2020)

Enforcement score: 73.5 (2020)
Overall score: 75 (2020)

Starting a Business score: 92.3 (2020)

Trading score: 100 (2020)

Enforcement score: 64.3 (2020)
Taxes and other revenues53.8% (of GDP) (2017 est.)51.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-2.6% (of GDP) (2017 est.)-1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 19.6%

male: 20.8%

female: 18.2% (2019 est.)
total: 14.2%

male: 16%

female: 12.3% (2019 est.)
GDP - composition, by end usehousehold consumption: 54.1% (2017 est.)

government consumption: 23.6% (2017 est.)

investment in fixed capital: 22.5% (2017 est.)

investment in inventories: 0.9% (2017 est.)

exports of goods and services: 30.9% (2017 est.)

imports of goods and services: -32% (2017 est.)
household consumption: 51.2% (2017 est.)

government consumption: 23.4% (2017 est.)

investment in fixed capital: 23.3% (2017 est.)

investment in inventories: 1.3% (2017 est.)

exports of goods and services: 85.1% (2017 est.)

imports of goods and services: -84.4% (2017 est.)
Gross national saving23.4% of GDP (2019 est.)

23.1% of GDP (2018 est.)

22.8% of GDP (2017 est.)
25.3% of GDP (2019 est.)

24.8% of GDP (2018 est.)

25.2% of GDP (2017 est.)

Source: CIA Factbook