France

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

Since 2005, the annual growth rate of the French economy has stayed, with difficulty, at 2%, that is more or less at the level of inflation. Foreign trade is dynamic, but is struggling to support the growth of the GDP. As well, household confidence is relatively depressed and does not stimulate consumer spending.
Since its election in 2007, the Sarkozy government has undertaken various structural reforms to reduce the budget deficit and contain the level of public debt. At the same time, measures have been taken to favor the return to work, investment and exports.
In the second quarter of 2007 the level of unemployment was 8.1%.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	2,061.18	2,137.51	2,252.21	2,515.24e	2,656.53e
GDP (constant prices, annual % change)	2.5	1.7	2.0	1.9e	2.0e
GDP per capita (USD)	33,988.57	35,043.56	36,708.33	40,781.52e	42,848.77e
General government balance (in % of GDP)	-3.6	-3.0	-2.5	-2.5e	-2.7e
Inflation rate (%)	2.3	1.9	1.9	1.6e	1.8e
Unemployment rate (% of the labor force)	9.6	9.7	9.5	8.6	8.0
Current Account (billions USD)	2.64	-23.95	-27.71	-39.36e	-48.89e
Current Account (in % of GDP)	0.1	-1.1	-1.2	-1.6e	-1.8e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	9.5	8.6	8.0

Source:

Main sectors of industry

France is the biggest agricultural power in the European Union with one quarter of the total agricultural production. This sector makes up 2.5% of the French GDP and France is the second agricultural power in the world after the United States. The agricultural activities of the country are helped by enormous subsidies, especially from the European Union. Wheat, corn, meat and wine are the main agricultural products. The manufacturing industry of the country is varied and the country is at the heart of a process of de-industrialization which translates into relocations. The key industrial sectors in France are telecommunications, electronics, cars, aerospace and arms. The tertiary sector represents about 75% of the French GDP. 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
Value added (annual % change)	-11.2	1.7	1.4
Value added (in % of GDP)	2.2	20.9	76.9
Employment by sector (in % of total employment)	4.0	24.6	71.0

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.06	0.89	0.81	0.80	0.80

Source: World Bank - World Development Indicators

Foreign trade in figures

France is the 7th exporting power in the world. Exports are particularly supported by the aeronautical and automobile industries. And yet the country registers a high level of trade deficit. Imports are steady, French people being particularly fond of imported goods which are sold relatively cheaper on the market compared with products "Made in France".
Despite the government's efforts to favor innovation (with the development of "poles of competitiveness" and the setting up of tax credits in favor of Research and Development), French exports have relatively poor added value. French SMEs do not appear much on the markets which have a strong development potential (China or Eastern Europe) and continue to suffer from comparison with their German neighbours whose export potential is widely exploited.

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	299,557	358,487	429,941	471,362	514,579
Exports of goods (millions USD)	307,196	361,913	421,275	439,218	483,631
Imports of services (millions USD)	68,907	82,863	98,462	106,102	110,002
Exports of services (millions USD)	86,130	98,759	109,517	115,986	115,505
Imports of goods and services (annual % change)	1.7	1.1	6.6	6.1	n.c.
Exports of goods and services (annual % change)	1.5	-1.2	3.9	3.1	n.c.
Imports of goods and services (in % of GDP)	25.4	24.6	25.5	27.1	n.c.
Exports of goods and services (in % of GDP)	27.1	25.6	25.7	26.1	n.c.
Trade Balance (millions USD)	7,638	3,426	-8,666	-32,144	-30,948
Trade Balance (including service) (millions USD)	24,862	19,322	2,389	-22,260	-25,445
Current Account (millions USD)	10,997	11,803	-6,808	-33,289	-27,667
Current Account (in % of GDP)	0.8	0.7	-0.3	-1.6	-1.2
Foreign trade (in % of GDP)	52.5	50.1	51.2	53.1	n.c.

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Germany	14.5%
Spain	9.9%
Italy	9.1%
United Kingdom	8.5%
Belgium	7.4%

Main suppliers (% of imports)	2006
Germany	16.3%
Italy	8.5%
Belgium	8.3%
Spain	6.9%
United Kingdom	6.1%

Source: 2006

Main products

Main exports (% of exports)	2006
Machinery and mechanical appliances	12.4%
Vehicles other than railway or tramway	12.3%
Electrical machinery and equipment	9.8%
Aircraft, spacecraft	6.0%
Pharmaceutical products	5.0%

Main imports (% of imports)	2006
Mineral fuels, mineral oils	14.8%
Machinery and mechanical appliances	12.3%
Vehicles other than railway or tramway	10.4%
Electrical machinery and equipment	9.6%
Plastics	3.8%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of 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
Online newspapers: Le Monde (only in French)
Le Figaro (only in French)
Challenges (in French and English)
Libération (only in French)
Les Echos (only in French)
La Tribune (only in French)
Search Engines: Nomade
Voilà
Altavista
Aol.fr
Caloweb
C'est Trouvé
Excite.fr
La Boussole
Hotbot.fr
Lycos.fr
Msn.fr
Netscape
Sharelook.fr

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 one third every 3 years by uninominal vote on a majority basis. The deputies (MPs) are elected by direct universal suffrage. They examine successively Bills and private Bills, 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