Economic Overview

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 Sectors of Industry

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.

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

63.3/100

Position:

moderately free

World Rank:

64 out of 179

Regional Rank:

28 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Sources of General Economic Information

Ministries

Ministry of the Economy, Finance and Industry
Ministry of agriculture and fisheries
Ministry of small and medium enterprises, commerce, the craft industry and liberal professions

Statistical Office

French Institute of Statistics (INSEE)

Central Bank

The European Central Bank
The Bank of France

Stock Exchange

Euronext

Other Useful Resources

Documentation center for Economy-Finance

Main Online Newspapers

Le Monde (only in French)
Le Figaro (only in French)
Challenges (in French and English)
Libération (only in French)
Les Echos (only in French)
La Tribune (only in French)

Political Outline

Type of State

Republic, parliamentary democracy combined with presidential power.

Executive Power

The President of the Republic is the Head of State. He is elected by direct universal suffrage for 5 years. He appoints the Prime Minister and his government at the suggestion of the Prime Minister. The Prime Minister sets the amount of the State's expenses and revenue, and prepares some bills.

Legislative Power

The parliament is composed of the Senate and the National Assembly. Senators are elected by indirect universal suffrage for 9 years renewable by a one-third majority vote every 3 years. The deputies (MPs) are elected by direct universal suffrage. They examine bills and private bills successively, vote laws and monitor the government.

Main Political Parties

The French Right is made up of the Union for a Popular Movement (UMP), the majority party, the Union for French Democracy (New UDF) and the Democratic Movement (MoDem) situated more to the Center and the National Front (FN) which is on the extreme right.
The Left brings together the Socialist Party (PS), the Greens (Ecologists), the French Communist Party (PCF) and various extreme left parties.

Current Political Leaders

President : Nicolas Sarkozy (since May 2007) - UMP
Prime Minister : François Fillon (since May 2007) - UMP

Next Election Dates

Presidential and Parliamentary elections: 2012

Indicator of Freedom of the Press

World Rank:

43/175

Evolution:

8 places down compared to 2008

Source: Worldwide Press Freedom Index 2009, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Free

Political Freedom:

1/7

Civil Liberties:

1/7

Map of freedom 2007
Source: Freedom House