Economy of France

The economy of France is highly developed and market-oriented.[23] It is the world's seventh-largest economy by 2020 nominal figures and the tenth-largest economy by PPP. As of September 30, 2020, it was the 3rd largest economy of Europe, after the economy of Germany and the Economy of the United Kingdom.[24]

Economy of France
La Défense, the financial hub of France
CurrencyEuro (EUR, €)
Calendar year
Trade organisations
EU, WTO and OECD
Country group
Statistics
Population 67,098,824 (1 January 2020, provisional)[3]
GDP
  • €3.1 trillion (nominal; 2021 est.)[4]
  • $3.23 trillion (PPP; 2021 est.)[4]
GDP rank
GDP growth
    • 1.8% (2018)
  • 1.5% (2019)
    • -9.8% (2020e)
  • 6.0% (2021e)[4]
GDP per capita
  • $44,995 (nominal; 2021 est.)[4]
  • $49,492 (PPP; 2021 est.)[4]
GDP per capita rank
GDP by sector
  • 0.5% (2020 est.)[4]
  • 1.3% (2019)[4]
  • 2.1% (2018)[4]
Population below poverty line
  • 5.5% or 13.2% with DOM-TOM
  • 17.746735272836% at risk of poverty or social exclusion (AROPE, 2018)[6]
28.5 low (2018, Eurostat)[7]
Labour force
  • 30,394,934 (2020, ILO)[10]
  • 71.6% employment rate (Target: 75%; 2019)[11]
Labour force by occupation
Unemployment
  • 8.1% with DOM-TOM (Q1, 2021)[12]
  • 19.7% youth unemployment (15 to 24-year-olds; July 2020)[13]
Average gross salary
€35,484 / $42,300 annually (2017)[14]
€26,700 / $30,840 annually (2017)[15]
Main industries
32nd (very easy, 2020)[16]
External
Exports $969.0 billion (2019 est.)[5]
Export goods
machinery and equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages
Main export partners
Imports $1021.6 billion (2019 est.)[5]
Import goods
machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals
Main import partners
FDI stock
  • $858.3 billion (31 December 2017 est.)[5]
  • Abroad: $1.429 trillion (31 December 2017 est.)[5]
−$18.10 billion (2019 est.)[5]
$5.250 trillion (31 March 2017)[17]
Public finances
  • 98.1% of GDP (2019)[18]
  • €2.380 trillion (2019)[18]
  • €72.8 billion deficit (2019)[18]
  • −3.0% of GDP (2019)[18]
Revenues52.6% of GDP (2019)[18]
Expenses55.6% of GDP (2019)[18]
Economic aiddonor: ODA, $9.50 billion (2016)[19]
  • AA
  • Outlook: Stable
  • Aa2
  • Outlook: Stable
  • AA
  • Outlook: Stable
Foreign reserves
$237.83 billion (April 2020)

All values, unless otherwise stated, are in US dollars.

France has a diversified economy,[25] that is dominated by the service sector (which in 2017 represented 78.8% of its GDP), whilst the industrial sector accounted for 19.5% of its GDP and the primary sector accounted for the remaining 1.7%.[26] France was in 2020 the largest Foreign Direct Investment recipient in Europe,[27] and Europe's second largest spender in Research and development. [28] It was ranked among the 10 most innovative countries in the world by the 2020 Bloomberg Innovation Index,[29] as well as the 15th most competitive nation globally, according to the 2019 Global Competitiveness Report (up 2 notches compared to 2018).[30] It was the fifth-largest trading nation in the world (and second in Europe after Germany). France is also the most visited destination in the world,[31][32] as well the European Union's leading agricultural power.[33]

According to the International Monetary Fund (IMF), in 2020, France was the world's 20th country by GDP per capita with $39,257 per inhabitant. In 2019, France was listed on the United Nations's Human Development Index with a value of 0.901 (indicating very high human development) and 23rd on the Corruption Perceptions Index in 2019.[34][35]

Paris is a leading global city, and has one of the largest city GDP in the world.[36] It ranks as the first city in Europe (and 3rd worldwide) by the number of companies classified in Fortune's Fortune Global 500.[37] Paris has been ranked as the 2nd most attractive global city in the world in 2019 by KPMG.[38] La Défense, Paris's Central Business District, was ranked by Ernst & Young in 2017 as the leading business district in continental Europe, and fourth in the world.[39] The OECD is headquartered in Paris, the nation's financial capital. The other major economic centres of the country include Lyon, Toulouse (centre of the European aerospace industry), Marseille, Lille and Bordeaux.

France's economy entered the recession of the late 2000s later and appeared to leave it earlier than most affected economies, only enduring four-quarters of contraction.[40] However, France experienced stagnant growth between 2012 and 2014, with the economy expanding by 0% in 2012, 0.8% in 2013 and 0.2% in 2014. Growth picked up in 2015 with a growth of 0.8%. This was followed by a growth of 1.1% for 2016, a growth of 2.2% for 2017, and a growth of 2.1% for 2018.[41] According to the OFCE, the expected growth rate for 2019 was 1.3%.[42][circular reference]