Economic Outline | Political Outline
Since 2005, the annual growth rate of the French economy has stayed with difficulty at around 2%, practically at the same level as inflation. However, this rate decreased in 2008 to 0.7% because of the financial crisis which affected the country and it is expected that there will be practically no growth in 2010.
France is especially dynamic in the area of foreign trade and more specifically in exporting services. Nevertheless, foreign trade is having more and more difficulty in supporting GDP growth. Likewise, the loss, by households, of confidence has had a negative impact on consumer spending.
Since its election in 2007, the Sarkozy government has undertaken various structural reforms to reduce the budget deficit and keep the level of the public debt in check. At the same time, measures have been taken to promote re-employment, investment and exports. Unemployment, which was at 7.3% in the third quater of 2008, has reached more than 9% in 2009.
The global financial crisis has shown that France had a healthy and secure financial system. In effect, French banks operate within a healthy environment which avoided chain-reaction failure, as seen in the United States.
| Main Indicators | 2008 | 2009 | 2010 | 2011 | 2012 |
| GDP (billions USD) | 2,866.83 | 2,675.92e | 2,668.79e | 2,723.49e | 2,809.49e |
| GDP (Constant Prices, Annual % Change) | 0.3 | -2.2e | 1.5e | 1.8e | 2.0e |
| GDP per Capita (USD) | 46,035 | 42,747e | 42,414e | 43,087e | 44,245e |
| General Government Balance (in % of GDP) | -3.2 | -4.9e | -4.6e | -4.5e | -4.5e |
| General Government Gross Debt (in % of GDP) | 67.5 | 77.4e | 84.2e | 88.6e | 91.6e |
| Inflation Rate (%) | 3.2 | 0.1e | 1.2e | 1.5e | 1.7e |
| Unemployment Rate (% of the Labor Force) | 7.9 | 9.4e | 10.0e | 9.9e | - |
| Current Account (billions USD) | -64.78 | -38.84e | -51.42e | -50.37e | -46.03e |
| Current Account (in % of GDP) | -2.3 | -1.5e | -1.9e | -1.8e | -1.6e |
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
France is the biggest agricultural power in the European Union accounting for a quarter of its total agricultural production, and the second agricultural power in the world after the United States. Nevertheless, the sector only represents a very small part of the country's GDP. The French agricultural sector receives significant subsidies, especially from the European Union. Wheat, corn, meat and wine are France's main agricultural products.
France's manufacturing industry is varied, however, the country is in the middle of undergoing a de-industrialization process which translates into numerous relocations. The key industrial sectors in France are telecommunications, electronics, cars, aerospace and weapons.
The tertiary sector represents about three-fourths 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 |
| Employment By Sector (in % of Total Employment) | 3.0 | 23.1 | 72.9 |
| Value Added (in % of GDP) | 2.0 | 20.4 | 77.6 |
| Value Added (Annual % Change) | 2.6 | -1.6 | 1.3 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
Source: Worldwide Press Freedom Index 2009, Reporters Without Borders
Map of freedom 2007
Source: Freedom House
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Last Updates: September 2010