France has the fifth largest economy in terms of GDP.  It is also the fifth largest exporter of durable goods and second largest exporter of services and farm products. The country’s major assets include tourism, research and development and services. Additonally,it has a highly skilled labour force.

France is among the most visited places in the world. In 2007, 81.9 million people visited France, compared with 59.2 million visitors for Spain and 56 million visitors for the United States.

The leading industrial sectors in the nation include construction and civil engineering, agrifood, and chemicals. The major export partners include Germany, Italy, Spain, Belgium, the UK and the US.

(Source: insee.fr)

Gross domestic product (GDP)

The country’s GDP growth rate has declined since 2007. The GDP growth in 2007 was 2.4%, which decreased to 0.2% in 2008 and further decreased to -2.6% in 2009. This was due to the drop in contraction of exports by 12.4%, a sharp fall in demand in enterprise sector from 2.9% in 2008 to -8.6% in 2009, a decline in the construction sector from 3% in 2008 to -6.1% in 2009 and a decrease in capital goods from 2.6% in 2008 to -11.9% in 2009.

(Source: National Statistics)

(Source: National Statistics, World Bank, OECD)

GDP per capita

 

The country’s GDP per capita increased from 2005 to 2008. However, the GDP per capita decreased to USD 41,051 in 2009.

(Source: World Bank)

Gross national income (GNI)

The Gross National Income (GNI) for 2009 was EUR 1.92 million, compared to EUR 1.97 million in 2008. The GNI per capita amounted to EUR 29,814.2 in 2009.

(Source: National Statistics)

The GNI per capita at PPP was registered at USD 33,930 in 2009.

(Source: World Bank)

Inflation rate

Inflation rate increased from 0.1% in 2009 to 1.7% in 2010. Specifically, inflation in 2008 doubled from the previous year to 3.2%, before declining to 0.1% in 2009.

Income tax rate

Income tax on individual income in France is taxed progressively from 5.5% to 40%. 

Corporate tax rate

Corporate tax rate is 33.33%.

(Source: worldwide-tax)

(Source: doingbusiness.org)

Foreign direct investment

Portfolio investment

The Portfolio investment in 2010 (Jan – Oct ) amounted to EUR 215.5 billion as compared to EUR 237.8 billion in 2009.

(Source: National Statistics, Central Bank)

Banking assets

The total central bank assets amounted to EUR 502,952 million, with a decrease of 8.6% over the previous year.

(Source: Central Bank)

Non-performing loan ratio

The gross non-performing loans were 90.7%, with an overall cover ratio of EUR 124.5 billion in December 2009.

(Source: Central Bank)

Consumer price index

The consumer price index rose sharply from 2008 to 2010. The growth in prices of oil and food products accounted for the increase in the CPI. This rise in prices was counterbalanced by a decline in prices of tourism services and some manufactured products.

(Source: National Statistics)

Base Year: 2005 = 100

(Source: National Statistics)

Producer price index

The Producer Price Index dropped to -6.4% in 2009, while hovering above the 3.5% mark during Apr-Sep 2010. The PPI for September 2010 was 4.3. There was a decline in PPI in 2009 because of a decrease in the prices of oil products. There was also a drop in the prices of food products, beverages and tobacco. The increase in 2010 was primarily due to the rise in prices of the refined petroleum products (0.8%), food products (0.8%), transport equipment and the manufactured products (0.3%).

(Source: Central Bank , National Statistics)

Interest rate on savings deposits

(Source: Central Bank)

Interest rate on time deposits

(Source: Central Bank)

Money supply

The money supply for December 2010 was  EUR 1,924,389 million, compared to the previous years EUR 1,901,250 million.

(Source: National Statistics)                

Public debt level

The public debt level also known as gross debt, amounted to EUR 1574.6 billion in 2010 Q3, showing a decrease of EUR 16.9 billion from the previous quarter in the same year.

(Source: National Statistics)

Government expenditure

The total government expenditure for 2009 was EUR 1,067.7 billion. 42% of the expenditure was in the social protection sector, followed by 15% in the health sector, 13% in the public services general sector and 11% in the education sector.

(Source: National Statistics)

Official exchange rate

The official exchange rate (EUR/USD) for January 2008, 2009 and 2010 were 1.47, 1.32 and 1.43 respectively.

(Source: Central Bank)

Government finances

Sovereign debt dynamics

Public sector borrowing Rrequirement/fiscal balance

The general government borrowing requirement in 2009 increased to EUR 144.4 billion from EUR 65 billion in 2008.  The central government and social security agencies deficits amounted to EUR 117.6 billion and EUR 24 billion in 2009 respectively.

(Source: Central Bank)

Total revenue

The total revenue collected by the government in 2009 was EUR 923.4 billion.

(Source: National Statistics)

Tax revenue

The tax revenue amounted to EUR 793 billion in 2009, declining 5.1% from the previous year. Social security funds contributed to 54.4% of total revenues, followed by 30.5% and 14.7% of revenues collected from central and local government respectively, and only 0.5% of revenues from institutions of the European Union.

(Source: National Statistics)

(Source: National Statistics)

Current account balance

The recent fall in trade balance was because of lower oil imports, which reduced the supply of natural hydrocarbon and slowed activity of ports and refineries. 

The account balance for the year 2010:

(Source: National Statistics)

Balance of payments

(Source: National Statistics, Central Bank)

Labour Force

The country’s had a total labour force of 28,694,000 in 2009.

(Source: OECD)

Labour force participation rate

The labour force participation rate for 2009 was 70.4% as compared to 69.6% in the year 2005.

(Source: National Statistics)

Unemployment Rate

The labour force participation rate for 2009 was 70.4% as compared to 69.6% in the year 2005. The unemployment rate in 2010 Q3 was recorded at 9.7%.

(Source: National Statistics)

(Source: National Statistics