Economy - overview

France was transitioning from an economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms but is in the midst of a euro-zone crisis. 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. 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. 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. The unemployment rate increased from 7.4% in 2008 to 9.3% in 2010 and 9.1% in 2011. Lower-than-expected growth and increased unemployment have cut government revenues and increased borrowing costs, contributing to a deterioration of France's public finances. The government budget deficit rose sharply from 3.4% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 5.8% of GDP in 2011, while France's public debt rose from 68% of GDP to 86% over the same period. Under President SARKOZY, Paris implemented austerity measures that eliminated tax credits and froze most government spending in an effort 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 levels. Socialist Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, as well as measures such as forcing banks to separate their traditional deposit taking and lending activities from more speculative businesses, increasing taxes on bank profits, introducing a new top bracket on income taxes for people earning over ?1 million ($1.3 million) a year, and hiring an additional 60,000 civil servants during his five-year term of office.

GDP (purchasing power parity)

$2.214 trillion (2011 est.)
$2.178 trillion (2010 est.)
$2.148 trillion (2009 est.)
note: data are in 2011 US dollars

GDP (official exchange rate)

$2.808 trillion (2011 est.)

GDP - real growth rate

1.7% (2011 est.)
1.4% (2010 est.)
-2.6% (2009 est.)

GDP - per capita (PPP)

$35,000 (2011 est.)
$34,600 (2010 est.)
$34,300 (2009 est.)
note: data are in 2011 US dollars

GDP - composition by sector

agriculture: 1.8%
industry: 18.8%
services: 79.4% (2011 est.)

Population below poverty line

6.2% (2004)

Labor force

29.61 million (2011 est.)

Labor force - by occupation

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

Unemployment rate

9.3% (2011 est.)
9.3% (2010 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)

19.8% of GDP (2011 est.)

Budget

revenues: $1.386 trillion
expenditures: $1.535 trillion (2011 est.)

Taxes and other revenues

49.2% of GDP (2011 est.)

Budget surplus (+) or deficit (-)

-5.8% of GDP (2011 est.)

Public debt

85.5% of GDP (2011 est.)
82.4% of GDP (2010 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% (2011 est.)
1.7% (2010 est.)

Central bank discount rate

1.75% (31 December 2011)
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 2011 est.)
3.373% (31 December 2010 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

$951.3 billion (31 December 2011 est.)
$887.3 billion (31 December 2010 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

$2.62 trillion (30 October 2011 est.)
$2.336 trillion (31 December 2010 est.)

Stock of quasi money

$NA

Stock of domestic credit

$4.319 trillion (31 December 2009 est.)
$4.121 trillion (31 December 2008 est.)

Market value of publicly traded shares

$1.926 trillion (31 December 2010)
$1.972 trillion (31 December 2009)
$1.492 trillion (31 December 2008)

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.)

Electricity - production

510 billion kWh (2009 est.)

Electricity - production by source

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

Electricity - consumption

460.9 billion kWh (2008 est.)

Electricity - exports

44.91 billion kWh (2009 est.)

Electricity - imports

25.7 billion kWh (2009 est.)

Oil - production

84,820 bbl/day (2010 est.)

Oil - consumption

1.861 million bbl/day (2010 est.)

Oil - exports

487,200 bbl/day (2009 est.)

Oil - imports

2.22 million bbl/day (2009 est.)

Oil - proved reserves

91.63 million bbl (1 January 2011 est.)

Natural gas - production

721 million cu m (2010 est.)

Natural gas - consumption

49.78 billion cu m (2010 est.)

Natural gas - exports

2.945 billion cu m (2010 est.)

Natural gas - imports

46.2 billion cu m (2010 est.)

Natural gas - proved reserves

6.796 billion cu m (1 January 2011 est.)

Current Account Balance

-$74.3 billion (2011 est.)
-$44.5 billion (2010 est.)

Exports

$578.4 billion (2011 est.)
$517.2 billion (2010 est.)

Exports - commodities

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

Exports - partners

Germany 16.4%, Italy 8.2%, Belgium 7.7%, Spain 7.6%, UK 6.8%, US 5.1%, Netherlands 4.2% (2009)

Imports

$684.6 billion (2011 est.)
$588.4 billion (2010 est.)

Imports - commodities

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

Imports - partners

Germany 19.3%, Belgium 11.4%, Italy 8%, Netherlands 7.5%, Spain 6.8%, China 5.1%, UK 5% (2009)

Reserves of foreign exchange and gold

$166.2 billion (31 December 2010 est.)

Debt - external

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

Stock of direct foreign investment - at home

$1.186 trillion (31 December 2011 est.)
$1.161 trillion (31 December 2010 est.)

Stock of direct foreign investment - abroad

$1.787 trillion (31 December 2011 est.)
$1.746 trillion (31 December 2010 est.)