France Economy Profile 2013

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. With at least 79 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. 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. France's real GDP contracted 2.6% in 2009, but recovered somewhat in 2010 and 2011, before stagnating in 2012. The unemployment rate increased from 7.4% in 2008 and has remained above 9% per year since then. Lower-than-expected growth and increased unemployment have strained France's public finances. The budget deficit rose sharply from 3.4% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.5% of GDP in 2012, while France's public debt rose from 68% of GDP to 89% over the same period. Under President SARKOZY, Paris implemented some austerity measures to bring the budget deficit under the 3% euro-zone ceiling by 2013 and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro-zone debt. Socialist Party candidate Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, the separation of banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, and hiring an additional 60,000 teachers during his five-year term. France ratified the EU fiscal stability treaty in October 2012 and HOLLANDE's government has maintained France's commitment to meeting the budget deficit target of 3% of GDP during 2013 even amid signs that economic growth will be lower than the government's forecast of 0.8%. Despite stagnant growth and fiscal challenges, France's borrowing costs declined during the second half of 2012 to euro-era lows.

GDP (purchasing power parity)

$2.253 trillion (2012 est.)
$2.25 trillion (2011 est.)
$2.212 trillion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate)

$2.58 trillion (2012 est.)

GDP - real growth rate

0.1% (2012 est.)
1.7% (2011 est.)
1.7% (2010 est.)

GDP - per capita (PPP)

$35,500 (2012 est.)
$35,600 (2011 est.)
$35,200 (2010 est.)
note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 1.9%
industry: 18.3%
services: 79.8% (2012 est.)

Population below poverty line

6.2% (2004)

Labor force

29.62 million (2012 est.)

Labor force - by occupation

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

Unemployment rate

9.8% (2012 est.)
9.2% (2011 est.)

Unemployment, youth ages 15-24

total: 22.6%
male: 23.4%
female: 21.7% (2009)

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)

19.9% of GDP (2012 est.)

Budget

revenues: $1.341 trillion
expenditures: $1.458 trillion (2012 est.)

Taxes and other revenues

52% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

-4.5% of GDP (2012 est.)

Public debt

89.1% of GDP (2012 est.)
86.1% of GDP (2011 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

Inflation rate (consumer prices)

2.3% (2012 est.)
2.3% (2011 est.)

Central bank discount rate

1.5% (31 December 2012)
1.75% (31 December 2010)
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

3.6% (31 December 2012 est.)
3.43% (31 December 2011 est.)

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 narrow money

$928.5 billion (31 December 2012 est.)
$901.6 billion (31 December 2011 est.)
note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

Stock of broad money

$2.571 trillion (31 December 2012 est.)
$2.499 trillion (31 December 2011 est.)

Stock of quasi money

$NA

Stock of domestic credit

$3.484 trillion (31 December 2012 est.)
$3.448 trillion (31 December 2011 est.)

Market value of publicly traded shares

$1.569 trillion (31 December 2011)
$1.926 trillion (31 December 2010)
$1.972 trillion (31 December 2009)

Agriculture - products

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

Industries

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

Industrial production growth rate

2.4% (2011 est.)

Current Account Balance

-$58.7 billion (2012 est.)
-$54.44 billion (2011 est.)

Exports

$567.5 billion (2012 est.)
$589.7 billion (2011 est.)

Exports - commodities

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

Exports - partners

Germany 16.7%, Italy 8.3%, Spain 7.4%, Belgium 7.4%, UK 6.7%, US 5%, Netherlands 4.3% (2011)

Imports

$658.9 billion (2012 est.)
$692 billion (2011 est.)

Imports - commodities

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

Imports - partners

Germany 19.1%, Belgium 11.3%, Italy 7.7%, Netherlands 7.5%, Spain 6.6%, UK 5.1%, China 4.8% (2011)

Reserves of foreign exchange and gold

$171.9 billion (31 December 2011 est.)
$166.2 billion (2010 est.)

Debt - external

$5.633 trillion (30 June 2011)
$4.698 trillion (30 June 2010)

Stock of direct foreign investment - at home

$1.11 trillion (31 December 2012 est.)
$1.049 trillion (31 December 2011 est.)

Stock of direct foreign investment - abroad

$1.702 trillion (31 December 2012 est.)
$1.615 trillion (31 December 2011 est.)

Exchange rates

euros (EUR) per US dollar -
0.7838 (2012 est.)
0.7185 (2011 est.)
0.755 (2010 est.)
0.7198 (2009 est.)
0.6827 (2008 est.)

Fiscal year

calendar year