France

France Economy

Economy - overview
France is in the midst of transition, from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The Socialist-led government partially or fully privatized many large companies, banks, and insurers, but the government retains controlling stakes in several leading firms, including Air France, France Telecom, Renault, and Thales, and is dominant in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. 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. The current government has lowered income taxes and introduced measures to boost employment. The government is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The government is also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe (43.8% of GDP in 2003). The current economic slowdown and inflexible budget items have pushed the 2003 deficit to 4% of GDP, above the EU's 3% debt limit. Business investment remains listless because of low rates of capital utilization, sluggish demand, high debt, and the steep cost of capital.

GDP
purchasing power parity - $1.661 trillion (2003 est.)

GDP - real growth rate
0.5% (2003 est.)

GDP - per capita
purchasing power parity - $27,600 (2003 est.)

GDP - composition by sector
agriculture: 2.7%
industry: 24.4%
services: 72.9% (2003 est.)

Investment
19.2% of GDP (2003)

Population below poverty line
6.5% (2000)

Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 25.1% (1995)

Distribution of family income - Gini index
32.7 (1995)

Inflation rate
2.1% (2003 est.)

Labor force
27.39 million (2003 est.)

Labor force - by occupation
agriculture 4.1%, industry 24.4%, services 71.5% (1999)

Unemployment rate
9.7% (2003 est.)

Budget
revenues: $882.8 billion
expenditures: $955.4 billion, including capital expenditures of $23 billion (2003 est.)

Public debt
68.8% of GDP (2003)

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
-0.3% (2003)

Electricity - production
520.1 billion kWh (2001)

Electricity - consumption
415.3 billion kWh (2001)

Electricity - exports
72.6 billion kWh (2001)

Electricity - imports
4.2 billion kWh (2001)

Oil - production
34,920 bbl/day (2001 est.)

Oil - consumption
2.026 million bbl/day (2001 est.)

Oil - exports
409,600 bbl/day (2001)

Oil - imports
2.281 million bbl/day (2001)

Oil - proved reserves
144.3 million bbl (1 January 2002)

Natural gas - production
1.898 billion cu m (2001 est.)

Natural gas - consumption
42.01 billion cu m (2001 est.)

Natural gas - exports
1.725 billion cu m (2001 est.)

Natural gas - imports
40.26 billion cu m (2001 est.)

Natural gas - proved reserves
12.86 billion cu m (1 January 2002)

Current account balance
$13.8 billion (2003)

Exports
$346.5 billion f.o.b. (2003 est.)

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

Exports - partners
Germany 14.9%, Spain 9.6%, UK 9.4%, Italy 9.3%, Belgium 7.2%, US 6.8% (2003)

Imports
$339.9 billion f.o.b. (2003 est.)

Imports - commodities
machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals

Imports - partners
Germany 19.1%, Belgium 9.4%, Italy 9%, Spain 7.4%, Netherlands 7%, UK 7%, US 5.4% (2003)

Reserves of foreign exchange & gold
$70.76 billion (2003)

Debt - external
NA

Currency
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Currency code
EUR

Exchange rates
euros per US dollar - 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999)



- Info Provided by the CIA World Factbook -