Economic growth in France. French economy

France is currently in the middle of a transition from a prosperous modern economy that has a lot of state ownership and intervention to one that relies more on the mechanisms of the market. The government has partially or completely privatized many large industrial and insurance companies and banks, and ceded shares in such leading companies as Air France, France Telecom, Renault, and Thales. However, the state maintains a significant presence in some sectors, especially in energy, public transport and the defense industry. France is the most visited country in the world (over 75 million tourists annually) and maintains the world's third largest tourism income.

France's leaders remain committed to capitalism, in which they support the social sector through laws, tax policies and social spending that reduce income inequality and the impact of free markets on health and welfare. France weathered the global economic crisis better than most of the other major EU economies due to relative resilience in domestic consumer spending, a large public sector, and less exposure to falling export demand than some other countries.

However, France's real GDP contracted by 2.5% in 2009 but recovered somewhat in 2010, while the unemployment rate increased from 7.4% in 2008 to 9.5% in 2010. Active stimulation of the economy by the state and investment measures in response to the economic crisis, however, contributed to the deterioration of the financial condition of France. France's budget deficit widened from 3.4% of GDP in 2008 to 6.9% of GDP in 2010, while public debt rose from 68% of GDP to 82% over the same period.

The share of foreign capital in the French economy is large (industry up to 40%, real estate about 27.5%, trade - 20%, services - 9%). More than 20% of workers work at enterprises with foreign capital. The share of foreign capital in informatics and other branches of advanced technologies is especially high (over 50%). Paris is currently winding down its stimulus measures, removing tax breaks and freezing most government spending to bring the budget deficit down to 3% in line with Eurozone rules by 2013. The government highlighted France's commitment to fiscal discipline at a time of rising debt in other Eurozone countries and volatility in financial markets. President Nicolas Sarkozy - the one who secured the pension reform in 2010 - is expected to seek some tax reforms, but he may delay additional, more costly reforms until after the 2012 elections.

A traditional feature of French economic policy is a large share of the public sector, especially in strategically important areas - the oil and gas industry, transport. There is planning, but it is not normative, but indicative (targeted indicators are not normative for private enterprises). The share of foreign capital in the economy is large (industry up to 40%, real estate about 27.5%, trade - 20%, services - 9%). More than 20% of workers work at enterprises with foreign capital. The share of foreign capital in informatics and other branches of advanced technologies is especially high (over 50%).

France has the most developed railway network in Europe. Since 1981, most cities have been interconnected by a network of high-speed highways, the same branch was laid in a tunnel under the English Channel. The degree of social protection of the population is one of the highest in the world. Approximately 30% of GDP is spent on social needs. In 1998-2008 the 35-hour working week was officially established (the shortest in Europe), but in 2008 it was canceled, now the employer has the right to conclude individual agreements with trade unions and determine the number of working hours and overtime.

In 2007, trade with Russia amounted to 16.7 billion euros according to French statistics, and $16.4 billion according to Russian statistics.

History of development and main features of the French economy

France is one of the largest capitalist powers; it is located in the western part of the European continent. The territory of France is 552 thousand km2, and the population is about 46 million people. From the south, the country is washed by the warm waters of the Mediterranean Sea, in which France owns the island of Corsica. On the western shores of the country, neither day nor night, the noisy breathing of the waves of the Atlantic Ocean ceases. And from the northern neighbor - Great Britain - France is separated by the sea straits of the English Channel and Pas de Calais. In the northeast, in Flanders and the Ardennes, France borders Belgium and Luxembourg.

Further, to the east, rise the domed peaks of the Vosges. Here is the Franco-German border. Having reached the river Rhine, the frontier pillars turn sharply to the south, rising higher and higher: first on the mountain slopes of the Jura, along which the border with Switzerland runs, and then on the snow-covered ridges of the Alps that separate France from Italy. Here is the highest mountain in Western Europe - Mont Blanc (4810 m).

The Alpine ranges are cut by deep and rather wide valleys, convenient for communication. In the southwest lies the less high, but inaccessible mountain range of the Pyrenees. It forms the natural border of France with Spain and the small state of Andorra.

In ancient times, the Celts (Gauls) lived on the territory of modern France and the country was called Gaul. In the 5th century Gaul was conquered by the Franks - the people who came from the right bank of the Rhine (from them the country got its name - France). The Franks assimilated with the Celts.

During the time preceding the Second World War, the French government, together with the governments of Great Britain and the United States, condoned the aggressive policy of Nazi Germany. It did not prevent the German fascists from occupying Austria and Czechoslovakia and thereby contributed to the outbreak of the Second World War. After Germany attacked France's ally Poland in 1939, the indignation of the French people forced the government to declare war on Germany. But it was a "strange war". The French military command did not intend to fight Hitler, and when Hitler's troops invaded France in May 1940, the reactionary French government surrendered Paris and capitulated to the fascist aggressors. But at the end of 1944, French patriots, inspired by the victories of the USSR and its allies over Nazi Germany, with the help of Anglo-American troops, liberated their country from the German invaders. There were also many military conflicts in which France took part. For several years the French imperialists waged war against the rebellious Vietnam. For 7 years they waged war in Algeria, whose people demanded independence. In 1956, France, together with Great Britain and Israel, began an armed intervention in Egypt. But Egypt was supported by many peace-loving countries (including the USSR). In 1961, the Secret Armed Organization (OAS) sharply stepped up its activities in France. The threat of fascism arose in the country, but the government managed to resolve this difficult situation. France is a highly developed industrial and agricultural country. In terms of industrial production, it ranks fourth after the United States, England and the former Federal Republic of Germany. Its industry and agriculture are very diverse, as are the natural conditions of the country.

A lot of iron ore and bauxite, coal and potash salts are mined in the mines of France; hydroelectric power plants were built on mountain rivers. Automobiles and locomotives, machine tools and tractors, motors and various equipment are created at machine-building plants by the skilful hands of French workers; ships are built at the shipyards of port cities. Chemical enterprises produce acids, artificial fibers, dyes, plastics, medicines. France has long been famous for its perfumes. Textile factories produce cotton and linen fabrics, from synthetic and natural silk.

France is a maritime country. At its northern borders, its cold, leaden waves splash against the steep banks, wash out the soft limestone rocks and form rocks of the most bizarre shape. People had to work hard to create ports convenient for sea vessels. The largest of them - Le Havre - is located at the wide mouth of the river. Seine. A powerful concrete dam protects numerous berths and docks from the elements of the sea. Only gates are left in the dam”, through them nimble tugboats pull ocean ships on long ropes to the ort. Ships under the flags of various countries bring bales of cotton and wool, sacks of coffee and rice, rubber, mahogany for the manufacture of expensive furniture, spices and other goods to the port of Le Havre.

Paris, the capital of France, is a huge city with many faces. The population of Paris, together with the suburbs, reaches 7 million people. “Greater Paris” is spread over an area of ​​1500 km2. It originated 2000 years ago from the small village of Lutetia on the island of Cité, in the middle of the Seine.

In terms of economic development, it is inferior to Germany and a number of small countries (Norway, Denmark, Switzerland, Luxembourg). France accounts for 17% of industrial and 20% of agricultural production in Western Europe.

In the 1980s The economic development of France was characterized by slow growth rates, mass unemployment, sharp changes in the main directions of state regulation. The structural crisis of the world economy, the transition to a new type of reproduction had a strong impact on industrial production. After the crisis of the 1980s, the French industry restored its level of production only in 1986.

France's position in the world economy has somewhat weakened (1980 - 5.7% of the world's GDP). The country's share in the industrial output of the OECD countries declined from 6.6% to 5.7% in the 1980s. Reduced export opportunities. The unemployment rate has exceeded 10%.

In the 1990s, the French industry was still underspecialized, having difficulty adapting to rapidly changing market demands. The relatively low efficiency of the production apparatus was associated with the historical features of the development of the economy, which in the 50-60s. mainly focused on the domestic market, and in foreign relations a large place was occupied by developing countries, mainly within the former colonial empire. An important role in this process was played by the dominance of the credit sector in the structure of the economy, which usually shows excessive caution in the implementation of long-term industrial projects.

At the same time, the processes of restructuring the social structure of the economy, concentration and centralization of production and capital were actively proceeding in France. One hundred largest companies concentrated over 2/3 of industrial production. In a number of industries, the monopolization of production is approaching its maximum. In ferrous metallurgy, the two largest companies, Unisor and Sasilor, concentrated 70% of steel production, Compani Generale d'Electricite (KZhE), Thomson - 50% of the production of electronic and electrical equipment, Renault and Peugeot - almost the entire production of automobiles, "Peshine Yuzhin-Kulman" (PYUK) and "Imetal" - almost completely concentrated in their hands the production and marketing of non-ferrous metals.

The processes of concentration and centralization of capital and the restructuring of the French economy took place simultaneously with the process of internationalization of production and capital, which led to the creation of enormous power of TNCs. Thus, "Imetal" united 62 companies operating in 25 countries. The automotive company Renault has almost 45% of its production capacity and 25% of its workforce in foreign enterprises, and so on.

The centralization of capital at the national and international level has led to the strengthening of a number of French companies in world production. The chemical company "Pechine" has become the world leader in packaging products, the printing company "Ashet" has become the leading publisher of magazines in the world, the company "Cable de Lyon" has become the world leader in the production of electrical cables. Thomson Electrotechnical Concern took first place in the world in the production of navigation equipment for aircraft, and in Europe - in the production of consumer electronics. "Imetal" occupies a leading position in the production of lead, zinc, nickel in industrialized countries. In Western Europe, Aerospasial and Dasso-Breguet ranked first and third respectively in the aerospace industry. The positions of French companies among the largest corporations in Western Europe and the world have been strengthened. The list of the hundred largest companies includes 8 French associations (1961 - 2).

French banks have always actively participated in the activities of industrial companies through a system of participation in the ownership of equity capital, using, among other things, holding companies, investment funds, personal union. The process of interweaving of capital has led to the fact that the entire economy is covered by several financial groups with extensive international ties. These are the Nariba, Soyuz, Rothschild and Ampen-Schneider groups. Financial groups have a serious influence on the formation of economic policy.

At the same time, the interests of the largest companies were defended by the National Council of French Entrepreneurs (Patronat), as well as various sectoral, intersectoral and regional organizations of entrepreneurs, which are powerful levers of pressure on the government.

Small business plays an active role in the country's economy. Small and medium-sized enterprises, strengthening their positions in the period of 1970-80s. The small sector is very mobile. 30% of registered business units fail after two years, and one in two fails to make it to five years. The number of firms failing is high. An obstacle in the activities of new companies is the lack of accumulation of initial and working capital. The small sector is mainly focused on services and trade.

The functioning of the economic system occurs under the powerful influence of the state on the reproductive process. In terms of the degree of development of the mining and metallurgical complex, which is manifested in the active participation of the state in the regulation and programming of the economy, in the spread of state ownership, France stands out among the largest industrialized countries. In the 1980s there was a change in the main directions of economic policy from diregism to neoliberalism, to the strengthening of the role of the market. Changes in the alignment of political forces at the government level had a great influence on economic policy, which was primarily manifested in the attitude towards the public sector. In 1981, the socialist government nationalized 9 major industrial companies and 36 banks. The public sector concentrated 28% of production and 16% of employees. Nationalization contributed to the modernization and financial recovery of these companies, and made it possible to avoid the transfer of some firms under the control of foreign capital. The bloc of right-wing and center parties that came to power in 1986 adopted a denationalization program for 65 major industrial, banking and insurance companies. The largest banking groups Paribas and Societe Generale, the industrial giants Saint-Gobain, the Compani Generale d'Electricite, the financial company Tivas, the military-industrial company Matra, the financial group " Suez."

The public sector in France is still an important tool of economic policy. The renewal of fixed capital and the provision of conditions for reproduction in many sectors of the economy are directly decided by the state. The regulatory role of the state finds its vivid expression in state programming and planning, which was widely developed in the first post-war years. For this purpose, official bodies were created, among which the Plan Commissariat stands out. The developed plans focused the French economy on the development of new technologies, restructuring, and strengthening of scientific research.

The state is actively involved in the development of R&D. It accounts for more than half of the national funding for research and development. The state seeks to eliminate the existing gap in scientific and technical potential between France and other leading countries. From the second half of the 1980s. in the economic policy of the government, issues related to the creation of a single EU market were put forward as a priority. These include structural reforms, the implementation of a system of taxation and social security in accordance with the level of the Community. Structural features of the economy affect the position of France in matters of integration. It usually advocates the regulation of those industries where its competitive position is not high.

The government reduced state regulation of the economy and stimulated the private sector. For this purpose, currency control, price controls were abolished, taxes were reduced, and benefits to companies were increased. One of the cornerstones of economic policy has been the containment of wage growth, which has kept consumer spending at a moderate level, and the rate of return has reached the level of the early 1970s.

Industry of France

A significant part of GDP comes from industrial production - 20%, it provides 24% of jobs, 40% of investments and 80% of exports (2008 data). France has significant reserves of minerals: iron and uranium ores, bauxites, potash salts, etc. This creates a base for mining and heavy industry. In terms of the level of development of non-ferrous metallurgy, the country occupies a leading position in world rankings, in terms of steel production it is in third place in Western Europe. Main industries: mechanical engineering (2.6% of world production), chemical (fourth place in world exports), aerospace (France plays a leading role in the European Space Agency), automotive (third place in the world in car production), food (in terms of exports) in second place in the world after the USA), electronics, computer science, shipbuilding, electrical engineering.

A relatively insignificant role in the overall volume of the economy, but important for the prestige of the country, is played by the production and sale of luxury goods. One of the most advanced countries in the development of nuclear energy: over 75% of energy is obtained from nuclear power plants.

Growth rates of industrial production in France, % to the previous year

Under the influence of scientific and technological progress, there are significant changes in the sectoral structure of the economy. The importance of industry has declined, which now accounts for 20% of GDP (1980 - 32%). In industrial production, the share of engineering products increased, mainly due to growth in the electrical and electronic industries and, to some extent, in general engineering. This structural shift was accompanied by a reduction in the share and, in fact, curtailment of production in traditional industries.

However, in France there is still a rather high proportion of "old" industries, whose products cannot withstand competition on the world market from similar products of some Western and especially "new industrial countries". A large place is occupied by the food industry (12%). Only the UK has this share.

In terms of the share of products of engineering industries in industrial production, France lags behind the leading countries. The greatest lag is noted in the branches that are carriers of scientific and technical progress and ensure the modernization of the production apparatus on the basis of the latest technology. This is, first of all, in the production of machine tools, a number of branches of industrial electronics and computer science, microelectronics. Meanwhile, France lags far behind the leading countries in the production of metal-cutting machine tools and forging and pressing equipment, yielding to Germany and Japan in terms of total volume by about 8 times. The production structure of the machine tool industry is characterized by a relatively low proportion of progressive types of metalworking equipment.

The leading place in the structure of industrial production is occupied by general engineering and transport engineering. The automotive industry is one of the foundations of the national industrial structure. The two largest companies in the country, the private Peugeot-Citroen and the state-owned Renault, provide respectively 4 and 5% of the world production of passenger cars.

French companies rank second in the world, after Japan, in the production of power equipment for power plants. France remains the leading force in Western Europe's rocket industry. The Arianspace project secures the country's leading position in commercial satellite launches. It accounts for approximately 50% of the global space market.

The transition to an energy-saving type of production, high dependence on imports of fuel and energy resources caused a reorientation in the energy strategy. The main attention was paid to the development of nuclear energy, as well as alternative energy sources. The accelerated development of nuclear energy has led to a noticeable change in the structure of electricity production in the country. In 1973, nuclear power plants generated 8% of all electricity, thermal power plants - 65% and hydroelectric power plants - 27%, and in 1987 the share of nuclear power plants already amounted to 76%, the share of thermal power plants decreased to 7%. The development of nuclear energy made it possible to raise the degree of self-sufficiency of France in energy from 25% in 1975 to 50% in 1980 and 58% in 1987. As new nuclear power plants were commissioned and thermal power plants decommissioned using liquid fuel, oil imports decreased .

Agriculture in France

Agriculture is the industry most protected by the state, although its basis is private land ownership. The decisive share of production is provided by large farms (with an allotment of 20-100 hectares), but small and medium-sized ones predominate numerically. In terms of production, France ranks first in Western Europe and third in the world after the United States and Canada. It is the largest European producer of wheat, butter, beef, cheese (more than 400 varieties). More than 50% of the production comes from animal husbandry (cattle breeding). The share of wines in exports is traditionally high. French farmers are the main opponents of the introduction of genetically modified products in Europe, as French products are traditionally highly valued for their quality.

France is the largest agricultural producer in Western Europe. Agriculture, as of 2008, accounted for approximately 2.2% of GDP and 3.8% of the country's labor force, but contributed 25% of output in the EU. A characteristic feature of the socio-economic structure is the rather small size of farms. The average land area is 28 hectares, which exceeds the corresponding indicators of many EU countries. There is great fragmentation in land ownership. More than half of the farms exist on their own land. Large farms are the leading force in production. They provide more than 2/3 of products, occupying a dominant position in the production of almost all branches of agriculture.

In agriculture, group forms of farming have become widespread. The most important place among them is occupied by cooperatives, primarily for the use of agricultural machinery. Cooperatives operate in all areas of production. In winemaking, they provide 50% of production, 30% of canned vegetables, over 25% of meat trade, over 40% of dairy products. In the mid 1960s. agricultural production associations appeared, which arose as an expression of the desire of small and medium-sized producers to withstand the onslaught of big capital.

Agriculture is managed both through a system of state specialized bodies and through a number of mixed companies, mainly of a sectoral nature. State regulation is carried out mainly through economic impact. There is a specialized bank "Credit Agricole" with local branches, the Fund for Economic and Social Development. The European Fund for Agricultural Orientation has a great influence on the development of structural policy. Stimulating methods of state influence are used both to expand the production of certain crops, strengthen the structure of farms, and reduce overproduction.

The leading industry is animal husbandry, which accounts for 2/3 of the value of agricultural products, France is the first producer of barley and sugar among Western countries, the second - wheat, wine and meat. Traditionally, such industries as viticulture, horticulture, and oyster fishing are known.

Agriculture is highly industrialized. In terms of equipment saturation, the use of chemical fertilizers, it is second only to the Netherlands, Germany and Denmark. Technical equipment, improvement of farming agriculture has led to an increase in the country's self-sufficiency in agricultural products. For grain, sugar, it exceeds 200%, for butter, eggs, meat - over 100%.

Foreign economic relations of France

The French economy is deeply embedded in the world economy. French companies in the 1980s managed to slightly increase its share in world exports (6.5%) and reduce in imports. Foreign trade is a major factor in economic growth. About 1/5 of its final product is exported. In 2010, the volume of exports amounted to 508.7 billion dollars, and the volume of imports - 577.7 billion dollars.

The structure of French exports has certain features. It has a higher proportion of agricultural goods and raw materials. At present, the liquidating positions in the country's foreign trade are occupied by machinery and equipment. The largest share in this group of world trade is occupied by civil aircraft, electrical equipment and complete equipment for the construction of large industrial facilities, various types of weapons.

In the 1980s France's position in trade in many types of engineering products has noticeably weakened. In addition, over the past 20 years, the share in world exports of passenger cars, office equipment and computer equipment, special industrial equipment, machine tools, and electrical appliances has decreased. This is largely determined by the peculiarities of the sectoral structure of the economy and the nature of its specialization in the international division of labor, as well as a decrease in the competitiveness of industry. At the same time, it ranks second in the export of aviation equipment, locomotives, wagons; automobiles, chemical goods - the third place; in the export of military equipment and weapons, France holds the second place in the world after the United States. The three main arms exports are warships, aircraft and military weapons.

In terms of agricultural exports, France lags only behind the United States. More than 1/3 of manufactured products are sold on foreign markets. Agricultural exports are dominated by "mass" products - wheat, barley, corn, dairy products. The share of highly processed products - confectionery, meat products, chocolate, canned food - is lower than in other leading countries. The export specialization of France is significantly inferior to other large countries. So, in general engineering, only one production belongs to a high level of specialization (jet engines) and a number to a moderate one (pumps, steam engines, nuclear reactors, rotary electric power plants, refrigerators, heating equipment, agricultural machinery).

In the last two decades, the import component in the French economy has increased significantly (up to more than 20% of GDP), which is associated with the strengthening of the international division of labor and the change in the competitiveness of French goods. The highest share of imports is in the production of engineering and chemical industry products (40-60%). This is largely due to the peculiarities of the development of the country's scientific and technical potential and the introduction of scientific achievements into production.

Many French companies treat the EU market as their own. Over 60% of exports go to EU countries. This is the largest share among the four leading countries in Western Europe. France's main trading partner in this region, according to 2008 data, is Germany, which accounts for 15% of exports and 19% of imports. In second place is Spain (9% of exports and 7% of imports), followed by Italy (8% of exports and 8% of imports), Belgium (7% of exports and 11% of imports) and the Netherlands (4% of exports and 7% of imports). Among other countries, the United States is an important trading partner (6% of exports and 4% of imports). The share of developing countries in the country's trade has declined. The disadvantage of the geographical structure of foreign trade is the significant orientation of exports to countries with slowly expanding markets.

French companies are making great efforts to expand their foreign economic expansion. An important means of it is the export of capital. France accounts for 5% of the total foreign direct investment. At the same time, in the 1980s. share has been reduced.

The export of capital has noticeably reoriented towards industrialized countries, where the main object of capital investment is Western Europe, but its importance has decreased. In 1960, Western European countries accounted for 86.4% of French direct investment, and in 1986 their share dropped to 57%. During the same period, the share of the United States increased sharply - from 5.4% to 36.5%. In the 1980s French companies came in sixth place among foreign investors in the United States. Basically, their investments are concentrated there in the old industries - metallurgy, coal, chemical, oil industries and the production of car tires. In Western Europe, the bulk of French capital is invested in Germany and Great Britain.

Approximately 30% of total direct investment is concentrated in developing countries, which is higher than the share of other countries. The African continent has previously held and continues to occupy a special place. It accounts for over 50% of French investments in the Third World. They are mainly concentrated in the countries of the franc zone. In addition to the primary industries, investment is carried out in manufacturing industries through the establishment of assembly or autonomous enterprises with a focus on the local market.

France is also a major importer of capital. The leading place among foreign firms is occupied by American (48%). The investments of each individual European country are significantly inferior to them.

A large influx of foreign capital began in the 1960s. The share of foreign firms accounts for more than 1/4 of the total turnover and about 1/3 of commodity exports.

Structural features of the economy affect the position of France in matters of integration. It usually advocates the regulation of those industries where its competitive position is not high.

In the 1990-2000s. the government reduced state regulation of the economy and stimulated the private sector. For this purpose, currency control, price controls were abolished, taxes were reduced, and benefits to companies were increased. One of the cornerstones of economic policy has been the containment of wage growth, which has kept consumer spending at a moderate level, and the rate of return has reached the level of the early 1970s.

Main macroeconomic indicators of France

The French statistical office Insee reported that France's GDP grew by 1.5% in 2010 after falling by 2.7% in 2009. The country's budget deficit last year amounted to 136.5 billion euros, or 7.1% of GDP. In turn, the country's public debt in the period under review increased to 82.3% of GDP against 81.7% of GDP in 2009. The country's GDP grew by 0.9% in the first quarter of 2011 compared to a 0.3% growth in the fourth quarter of 2010. At the same time, the growth of real consumer spending in January-March of this year accelerated to 0.6% against 0.4%, the growth rate of exports increased to 1.4% after an increase of 0.3% in the fourth quarter of 2010, and the volume of imports rose 2.7% after falling 0.7% a quarter earlier.

The French economy in the II quarter of 2011 has not changed compared to the previous three months. Zero GDP growth, according to experts, could force President Nicolas Sarkozy to make significant cuts in budget spending and refuse to abolish taxes. The fall in household consumption in the II quarter of 2011 by 0.7% was the main reason for the lack of GDP growth.

The volume of industrial production in France in June 2011 decreased by 1.6% on a monthly basis, - reported the statistical agency Insee. In annual terms, the indicator increased by 2.3%. Experts polled by Bloomberg predicted that in June the figure would fall by 0.7%. In May, industrial production in France increased by 1.9%.

To date, France is experiencing serious structural problems - according to another study "Index of Default" by the Center for European Policy in Freiburg (Germany) and the German business newspaper Handelsblatt. The biggest concern is the Italian economy, economists say: since 2011 by the end of 2010 the default indicator fell from 6.2 points to - 0.6 points.

If in 2001-2003 France was a net exporter of capital and invested in foreign assets, then since 2004 the situation has changed: the country has become a net importer of capital and from that moment began to build up debt. In 2010, the capital requirement of the French economy was already at 3.8% of GDP with a budget deficit of 74 billion euros. Investments averaged 4% of GDP until 2005 and reached 5% by 2008, but from that moment they began to fall - to 3.2% in 2010.

Countries that "import capital" should channel it as much as possible into investments that increase production capacity, Handelsblatt notes: only such investments in the future generate income with which external debt can be repaid. The French default index, with the exception of stagnation in 2006 and 2007, has been steadily declining, and in 2010 fell below zero for the first time. This means that spending on consumption exceeded income in the domestic market, the study says. This gap is estimated in 2010 at least 0.6% of GDP - 12 billion euros.

The negative dynamics of the index suggests a decrease in France's creditworthiness compared to previous levels, experts fear. “Without fundamental real economic reforms, France faces a loss of creditworthiness in the medium term,” the Center for European Policy says in the materials. In addition, French banks are among the main holders of Greek debt securities: according to the Bank for International Settlements, by the end of 2010, Greece's debt to them reached $53 billion, including $15 billion in government bonds. France, therefore, for the first time found itself in the same category of risk as Italy and Spain.

Territory of France

The largest state in Western Europe with a total area of ​​​​545 thousand square meters. km. Has possessions in the Caribbean:

Martinique and Guadeloupe, as well as Reunion Island (east of Madagascar). The area, taking into account these territories, is 640.05 thousand square meters. km. The western and northern regions of France are plains; in the center and east, medium-low mountains; in the southeast, the Alps; and in the southwest, the Pyrenees.

Population of France

The population without overseas departments is 62 million people (2008), with dependent territories - 64.05 million people. France is characterized by: high birth rate and high life expectancy. According to IN SEE experts, according to these indicators, France may become a leader among other countries of the European Union. The average life expectancy is 80.98 years (men - 77.79 years, women - 84.33 years) (as of 2009). France is a country of mass immigration, especially the number of emigrants from the former French colonies in Africa. The French make up about 90% of the total population, but the outlying areas are inhabited by ethnic groups that differ in language and culture (in particular, the Bretons - 1.5 million people). The predominant religion is Catholicism (84% of the population).

State structure of France

A presidential republic, the head of state and executive power is the president, who is elected for a term of five years. In consultation with Parliament, he appoints the Prime Minister and members of the government. Parliament consists of two chambers: the National Assembly and the Senate.

Administrative-territorial division of France

22 regions and 96 administrative divisions. The capital is Paris. Other major cities: Marseille, Lyon, Strasbourg, Toulon.

GDP volume, economic growth rates and other statistical indicators

Index		Growth rate, %
Population, million people		population growth
GDP, billion USD (exchange rate)		Real GDP growth (adjusted for inflation)
GDP, USD billion (according to purchasing power parity)		Growth in domestic demand
GDP per capita, USD (at market exchange rates)		Inflation rate
GDP per capita, USD (Purchasing Power Parity)		current balance deficit. % of GDP
Average exchange rate, EUR/USD USA		Inflow of foreign direct investment (FDI). % of GDP

France is a member of many international economic organizations: the UN (since 1945), the IMF and the World Bank (since 1947), NATO (1949-1966), the OECD (since 1961), the EU (since 1957). ), G7 (since 1975), EBRD (since 1990), WTO (since 1995).

French Fiscal Sphere

More than half of the national income is redistributed through the budget (20% in 1913). Tax collections account for over 44% of the country's GDP. According to this indicator, the country occupies one of the leading places in the EU (along with Sweden). The tax burden increased in the 1990s and exceeds the EU average. The standard VAT rate is 19.6%. The standard corporate tax rate is 33.3%, but there are incentives for small businesses. The income tax is very high, especially its top rates. In 2008, the highest rate was reduced from 60% to 50%.

The French economy is characterized by the following features:

• state budget deficit;
• high public debt;
• foreign trade deficit;
• the French labor market is not flexible, and the unemployment rate is one of the highest compared to other EU countries;
• the level of taxation of French companies and social contributions is considered one of the highest in Europe;
• highly developed banking sector;
• an effective mechanism for the distribution of financial flows and, as a result, the insignificant scale of the shadow economy;
• high strike rate.

On the agenda of the government and legislators is a whole package of measures covering socio-economic, legal, political and international issues.

The core of the planned reforms will be a set of financial and tax measures aimed at implementing the main slogan of N. Sarkozy's program: "Work more - get more." The following measures should “rehabilitate work” and improve the purchasing power of the French:

• Exemption from taxation of overtime work (according to statistics, 37% of employees in France work overtime).
• Deduction from the taxable base of amounts paid on loans taken for the purchase of housing.
• Reduction or complete abolition (in the case of inheritance within the family) of inheritance tax.
• Reducing the tax on large fortunes in the case of investing in small enterprises.
• Elimination of taxes for working students.
• Expanding earning opportunities for working pensioners.
• Limiting the practice of so-called golden parachutes - "financial gifts" to the leading managers of large companies upon retirement.
• Cancellation of the practice of advance payment of taxes on enterprises.

One of the most difficult reforms planned by the government in the near future promises to be the adoption of a law on the so-called minimum services in the public sector in case of a strike. We are talking mainly about public transport workers (metro, buses, commuter trains), whose strikes more than once led to the complete disorganization of the transport system of large cities, creating extreme inconvenience for their residents. The new law is expected to require strikers to provide a minimum level of transport service, notify the authorities of the start of a strike two days in advance, and hold a secret ballot to continue the strike eight days after it begins.

But, according to experts, the tasks of achieving a "new economic growth" as well as reducing public debt to less than 60% of GDP, reaching a deficit-free budget by 2012 and complying with the "stability pact" of the EU may be difficult to implement.

Foreign economic relations of France

Countries importing products from France: Germany - 14.9%, Spain - 9.3%, Italy - 8.9%, UK - 8.1% (2007).

Countries exporting products to France: Germany - 18.9%, Belgium - 11.4%, Italy - 8.4%, Spain - 7.1% (2007).

The volume of exports in 2008 amounted to 761 billion dollars, the volume of imports - 838 billion dollars.

Main export positions in 2006

	Percentage of the total
Intermediates
Means of production
cars and equipment
Consumer goods
Processed foods and drinks
Main positions in imports in 2006
	Percentage of the total
Intermediates
Means of production
Consumer goods
cars and equipment

Europe and the world. It plays an important role in world politics, being a permanent member of the UN Security Council, the G7 and many international organizations, and since 2009 again NATO. Close cooperation and cooperation with the EU and Germany in particular have ensured the high growth rates of France's GDP in recent decades.

Short review

The French economy is well diversified across all sectors. The government has partially or completely privatized most major companies, including Air Telecom, Renault, and Thales. However, the role of the state remains significant in the energy sector, public transport and the military-industrial complex. Despite terrorist attacks, labor strikes and bad weather, France remains the most attractive tourist destination in the world. In 2016, 83 million foreigners visited it, with 530 thousand of them coming to Euro 2016.

Current situation

The political course of the President of France is aimed at increasing the competitiveness of the national industry and reducing unemployment. It is expected that about 50 billion US dollars will be additionally allocated for the implementation of these tasks. So far, the results of the program implementation are not yet visible. France's 2017 budget also includes income tax cuts for households and small and medium-sized businesses. François Hollande has already managed to pass two extremely unpopular economic reforms, which have led to large-scale protests.

The Macron Law allowed businesses to operate on certain Sundays of the month and set wages much more freely. The “El Khomri Law” was also targeted at this area, which caused a strong protest from the trade unions.

GDP

France is the third economy of the European Union. Countries such as Germany and Great Britain, respectively, are located on the first and second. The latter is in the process of leaving the European Union, but is still an official member of this association. France's GDP at purchasing power parity is, according to 2016 data, 2.699 trillion US dollars. According to this indicator, the country is in eleventh place in the world. GDP at the official rate. - 2.448 trillion US dollars. 7.7% of the population is below the poverty line.

The service sector plays a key role in the structure of France's GDP. It gives 79.8% of GDP. The key sector is tourism. The high share of the service sector in France's GDP is largely due to just this industry. Industry accounts for 18.3% The key sectors are mechanical engineering, the chemical industry and metallurgy. Agriculture provides 1.9% of GDP. The economically active population, according to 2017 data, is 30 million people. Of these, 71.8% are employed in the service sector, 24.3% in industry, and 3.8% in agriculture. The average salary is 34,800 euros, after taxes - 26,400. The state is in 29th place in the ranking of ease of doing business.

French GDP per capita

In the late 2000s, most of the countries of the world fell into recession. However, France was able to quickly stop the decline in economic indicators. Per capita, as of 2016, accounts for 42,400 US dollars. This is 330% of the world average. This is France's record high GDP per capita, if we consider the period from 1960 to 2016. Experts predict that in 2018 this figure will increase even more.

Economic growth

In the first quarter of 2017, French GDP increased by 1%. This is 0.2% less than in the past, but more than expected. For the period from 1950 to 2017, the average annual GDP growth in France was 3.19%. The largest increase in the rate was recorded in the second quarter of 1969. Then the GDP growth of France amounted to 12.5%. As for the record low, this value was due to the recent recession. In the first quarter of 2009, France's GDP decreased by 3.8%.

External sector

In 2016, France's exports to various countries of the world amounted to 505.4 billion US dollars. This is less than the previous one. Goods exported include machinery and equipment, aircraft, plastics, chemicals, pharmaceuticals, iron and steel, and beverages. Germany ranks first among France's main export partners. It accounts for 16.7% of the total.

Other export partners include Belgium, Italy, Spain, UK, USA and the Netherlands. The volume of French imports in 2016 amounted to 525.4 billion US dollars. This indicator also decreased compared to the previous year.

The trade balance is negative and amounts to 20 billion US dollars. Goods imported from abroad include machinery and equipment, vehicles, crude oil, aircraft, plastics, and chemicals. Again, Germany is the key import partner of the state under consideration. It accounts for 19.5% of the total value.

Other import partners include Belgium, Italy, the Netherlands, Spain, the UK and China. One of the key points of the new is the diversification of the sales market, so experts expect the expansion of cooperation between the state in question and Asia. The volume of foreign direct investment in December 2016 amounted to $1.1 trillion. This is more than a year earlier. The total external debt is $5.6 trillion. Unfortunately, this figure also increased in 2016.

France remains one of the fastest growing countries in the world. But whether the reforms planned by the government and the president will show results remains in question.

The French economy is one of the strongest in the European Union, second only to Germany in terms of its volume. Analysts even recognized France as the 6th most economically developed country in the world. But there are also problems. Accession to the European Union affected many economic indicators. France often cannot compete with Germany within the same monetary union, so its contribution to the overall European economy has seriously decreased to 13% by 2016

General characteristics and description of "weaknesses"

1. The service sector plays a leading role in the economy, it is in it that more than 3⁄4 of the entire economically active population of the country work.
2. The country is also characterized by a high share of the public sector.
3. For almost 18 years, the trade balance has shown a negative trend, so consumer demand is constantly stimulated through the provision of cheap loans to the population.
4. Another problem is the excessive growth of the population, largely due to the constant arrival of migrants in the country, which creates an additional burden on the economy.
5. Due to the introduction of the euro and the relative quality of French products, the country continues to lose competitiveness among the eurozone countries.
6. The weaknesses of the French economy include not only a great dependence on the public sector and a huge external debt, but also high unemployment, a budget deficit since the eighties of the last century.
7. To this day, technologies have been little introduced into the industrial sector, and a weak export base adds to the problems.

GDP and Key Indicators

Its maximum level was reached in 2007. But the global economic crisis that flared up a year later and the influx of migrants into the country led GDP to stagnation. In just 6 years from 2007 to 2013, the population of France increased by 2,000,000 people, which led to a marked decrease in the overall level of income. Because of this, the government has taken a course on raising tax rates. Of course, the population reacted negatively to this decision. Periodically, numerous strikes and strikes take place in France. And because of the high tax on luxury, eminent French seek to change citizenship (as did Girard Depardieu)

Agricultural field

The French authorities show a lot of concern for the field of agriculture, although it is characterized by private land ownership. Since the 1980s, the total number of people employed in agriculture has been declining, but large farms with an area of ​​more than 50 hectares have become more and more.

The state occupies the first position in all of Western Europe in terms of agricultural output, second only to the United States and Canada in the world. In France, not only beef and butter are produced, but also over 400 varieties of cheese, wheat is actively grown and exported abroad. According to experts, more than 50% of the grain produced in France is exported. Animal husbandry is also developed.

It is impossible not to mention the traditional for centuries the cultivation of grapes and the production of wines in France. French wines are always valued for their unsurpassed quality, which is why farmers strongly oppose the use of any genetically modified products.

Industrial sector

Industry provides a significant part of the French GDP (at the level of 20%). More than 30% of workers are employed in the industrial sector, which accounts for 40% of all investments. But the general trend is that the number of employed is declining.

The country is rich in minerals: here you can find potash salt, bauxite, and iron ore. The country is in the lead in the world rating of non-ferrous metal development.

Chem. industry, engineering, aerospace, electrical, food and automotive industries. Shipbuilding does not lag behind them. A large number of luxury goods are produced.

Energy sector

Nuclear energy accounts for almost 39%, oil for about 32%, and natural gas for 15.5%. 5% and 6% are coal and hydropower, respectively. A little more than 2 percent of the oil equivalent remains for alternative renewable sources.

France has a very well developed nuclear power industry. It covers approximately 77% of all consumer needs for electricity. The country is also the largest exporter of nuclear energy in the world.

Transport network in France

France has a developed transport network, with road transport becoming even more important. By the beginning of our millennium, approximately 75 percent of the total volume of goods transported across the country was accounted for by cars. At the same time, the share of cargo transportation by pipeline, rail, and water transport decreased.

The railway network is of great importance for the economy. The cities of the country are interconnected by a network of high-speed highways. There is also a railway line in the famous tunnel under the English Channel. As you know, this object connected the UK and France.

Tourism

Probably every tourist on planet Earth wants to visit France, visit the Louvre and the Eiffel Tower. Tourism brings a lot of money to the state budget. Nice, Provence, the Alps, cheese workshops, vineyards, ancient castles - all this attracts guests from other countries. The country is considered one of the most visited in the world (leaving behind Spain and the United States)

Employment in enterprises and labor conflicts

Between 1998 and 2008, the 35-hour working week was officially introduced in France, which became a “revolution in the world of labor relations” (at that time it was the shortest in Europe). But the reform did not last long. In 2008, the 35-hour rule was abolished at the national level. But companies were left free to negotiate agreements with unions to determine the length of the workweek and the amount of "overtime."

The country is praised for one of the highest levels of social protection of the population. Approximately 1/3 of GDP goes to social needs. But against the backdrop of a large number of migrants, this leads to new problems. Producers are forced to include social costs (contributions, taxes, transfers) into the cost of production, which leads to low price competitiveness of products manufactured in France.

In the middle of the last century, mass strikes often took place in this country. But by the end of the 20th century, their numbers had drastically declined. At that time, France alone counted only 141,000 strikers, while in Italy there were 1.7 million.

Conducting foreign trade

As far back as the 1980s, companies and enterprises from France managed to slightly increase their own share in world exports to 6.5%, as well as slightly reduce imports. Successful foreign trade is very important for the stability of the French economy. By 2010, imports only slightly exceeded exports.

What does the country export?

It is important to pay attention to the structure of exports. The country exports a lot of agricultural goods. Mechanical engineering products and technological equipment are also in the lead. The state ranks 2nd in terms of arms exports (second only to the United States).

What goods does France import?

The growth of the import component worries the government. The share of imported goods reached 20% of the gross domestic product. This is due to problems with the competitiveness of products from France.

More than half of all exports go to the EU countries. Germany has traditionally been a key partner in the market. From year to year, the volume of German exports is at the level of about 15%. Trade relations have been established with Spain, Italy, Belgium and the Netherlands, the USA. The trend is that the share of "second" (ie developing) countries in foreign trade is declining. The task of the government is to enter the expanding markets.

At the moment, many French enterprises and companies are trying to strengthen their foreign economic expansion. The country accounts for approximately 5% of the total foreign direct investment. French investors trust the capital of Germany and Great Britain. Africa occupies a special place. As we remember from history, there were many French colonies there. It accounts for about half of all investments from third world countries.

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ECONOMY OF FRANCE

France is a country with a high standard of living and advanced high technologies. It occupies a central geographical position in Western Europe, has access to the main trade routes in the Mediterranean and the Atlantic, and has a well-developed transport infrastructure. The economic weight of France allows it to play one of the key roles on the world stage.

According to various estimates, as a result of the UK's decision to leave the EU, which led to a 15% depreciation of the British pound, France, having surpassed England, regained its place as the fifth economy in the world and remains the second, after Germany, in the European Union. At the end of 2017, the French economy became the 7th economy in the world in terms of GDP, yielding to the United States of America (USA), China, Japan, Germany, Great Britain and India; and remains the second, after Germany, in the European Union. France's GDP is over 2 trillion. Euro. When comparing the GDP of countries in terms of purchasing power parity, France is in ninth place.

In the next France ranked 31st in the World Bank Doing Business 2018 survey , having dropped 2 positions in the rankings in a year. The reasons given are the long period of consideration of the issue of bankruptcy (1.9 years) and the still high tax burden (62.2%). At the same time, thanks to its customs procedures, France is among the countries with the most favorable trading climate.

France remains attractive to foreign investors . According to Business France statistics, 1,298 investment projects were started by foreign companies in 2017 (+16% compared to the previous period), which in turn created about 33,000 jobs, an increase of 6% compared to 2016 (26,400). This positive result for France can be explained by the resumption of global economic growth and the country's credible image against the backdrop of Brexit. Also last year, the share of foreign investment in the industrial sector increased (+23%).

At the same time, American investment accounted for 18% of the total number of foreign projects in France and 21% of the jobs created. Companies coming from across the ocean invested in 230 projects in 2017, up from 180 in 2016, with a preference for R&D. IBM, Facebook and Google are not the only ones showing their preference for France. Symphony, a document exchange platform, has decided to set up its first R&D center in the Sophia Antipolis technopolis near Nice. For the French economy, American organizations, whether they are pharmaceutical laboratories, internet giants, oil or industrial companies, are key players: 4,600 companies and 460,000 jobs have been created on French territory with a combined turnover of 45 billion euros.

At the end of 2017, the value of the nominal gross domestic product (GDP) of France amounted to 2,587.68 billion US dollars or 2,283.6 billion euros (according to the IMF as of February 25, 2019). At the same time, the level of GDP at PPP in France per capita was slightly higher than the average for the European Union. In the ranking of world powers in terms of GDP at PPP, France ranks 10th, behind China, the USA, India, Japan, Germany, Russia, Brazil, Indonesia and the UK. At the end of 2017, France's total GDP at PPP was $2,856 billion. The United Kingdom, which is in 9th place, has this indicator amounting to 2,925 billion US dollars, and the 11th - Mexico - 2,463 billion US dollars.

GDP per capita growth rate in France have recently been lower than in other most developed countries of the world, in particular in the USA. This causes controversy about the need for structural reforms in the economy. During his 5-year rule, E. Macron expects to reach an annual GDP growth of 1.8%, reduce the amount of public debt to 93% of GDP, and reduce the state budget deficit to 1% of GDP. At the same time, the authorities expect to save 60 billion euros (25 billion by reducing the state apparatus, 25 billion by cutting social programs, 10 billion by cutting funding for local authorities). The government is liberalizing labor legislation, which began under the administration of the socialist F. Hollande; reform of the state apparatus - downsizing, retraining, transition to digital document management; change in business regulation - reduction of inspections, simplification of certain rules, in particular, in construction, reduction of the tax and social burden on enterprises; there is a renewal of the country's political class.

According to the latest data French GDP growth in 2017 amounted to 1.9% . This is the highest figure since 2011, although it remains below the EU average of 2.5%. More and more experts, encouraged by this news, are beginning to say that economic growth will continue in 2018 and will amount to 2.3%. (a more conservative estimate of the Bank of France for the current year is 1.8%).

By the end of 2017, the public debt of France amounted to about 2,218.4 billion euros , which is just over 97% of the country's annual GDP. At the same time, it should be noted that the size of the public debt of France by the end of 2017 increased by $63.7 billion compared to the end of 2016.

The French budget in 2017 had a deficit of 2.6% of annual GDP, which is slightly better than in 2016, when the French budget deficit was 3.4% of annual GDP.

France is one of the founding countries of the European Union and the Eurozone . Being located in the center of an economically highly developed region, having powerful neighbors from the economic side (Great Britain, Germany, Italy), the French economy benefited from the creation of a common European market.

Leading French manufacturing industries in 2017 – mechanical engineering, incl. aviation and space industry, automotive industry, electrical and electronic engineering, shipbuilding. Besides, France is one of the world's largest producers of chemical and petrochemical products, ferrous and non-ferrous metals (aluminum, lead and zinc). France is also the world's largest producer of wines, luxury goods, including high fashion products, perfumes and cosmetics, and one of the world's major agricultural producers. Many French companies are world leaders in their industries: Areva - in the construction of nuclear power plants, Danone - in the production of dairy products, L "Oreal" - in the production of cosmetics, Michelin - in the production of tires, etc. In Western Europe, France is the largest producer of nuclear power and is also the most visited country in the world (about 85 million tourists a year).

According to local economists, the administration of E. Macron is reaping the benefits of economic growth. Budget revenues are growing. Tax collection in France in 2017 improved by 4 billion euros compared with autumn forecasts. The situation is especially good with VAT and corporate tax. This, in turn, led to a reduction of 6 billion euros in the budget deficit compared to forecasts. In 2017, the deficit amounted to 67.8 billion euros against 69.1 billion in the previous year. Thus, even if the EU authorities call on France to take into account the cost of reimbursing the 3% tax on dividends in the balance sheet in 2017, the country has a chance to achieve the stated goal - to reduce the budget deficit below the bar of 3% of GDP.

Following the results of the last quarter of 2017, budget expenditures for the social sphere (including health insurance) were increased, which also indicates a good state of affairs. In turn, the amount of funds allocated to local governments has increased, and it is possible that this trend will continue in the future, including through the growth of tax revenues.

In the fall of 2017, when preparing the draft budget for the next year, the government set economic growth at 1.7% of GDP, which turned out to be higher at the end of the year. As a result, tax revenues increased, which led to the formation of the so-called "tax reserve".

Thus, it is obvious that French industry was able to overcome the consequences of the 2008 crisis. and is in the best shape for the last 10 years, but this condition is still unstable due to the fact that after 2008 profitability in the industry has declined significantly, which in turn was a consequence of insufficient investment in the early 2000s. For the growth of the competitiveness of French goods on the international market, some more time is required, government experts expect.

State intervention in the French economy traditionally important. The level of government spending and therefore tax is one of the highest in the world. Mass nationalization was carried out immediately after World War II. In 1913, all types of public property, including municipal property, accounted for approximately 10% of France's national property, and in 1954, property owned by the state and local governments (land, buildings, roads, bridges, enterprises, property of the armed forces, cultural monuments, gold reserves, etc.) was estimated at 36% of the total national wealth. The election of F. Mitterand as president in 1981 led to a new wave of nationalization: 39 commercial banks became state property. However, then privatization began: for the period 1985-2003. the number of public sector enterprises decreased from 1856 (without communications and telecommunications) to 1117, and their share in the total number of employees fell by half - from 10.5 to 5.2% (1.1 million people). In 2001, the public sector consisted of 5.8 million civil servants and 1.3 million employees of state enterprises. The government participates in the capital of such largest and world-famous companies as Air France, Renault, Thales, etc. The share of state participation in such sectors of the economy as energy, public transport and defense is high.

IN French economy there is the concept of planning, but it is not normative, but indicative (targeted indicators are not mandatory for private enterprises). Great share in the French economy foreign capital (industry up to 40%, real estate about 27.5%, trade - 20%, services - 9%). More than 20% of workers work at enterprises with foreign capital. The share of foreign capital in informatics and other branches of advanced technologies is especially high (over 50%).

The main branch of the French economy is the service sector accounting for almost 68% of the country's GDP.

Most significant change in the structure of the French economy over the past decades, this is the strongest reduction in the share of agriculture in the value added structure: from 18% in 1949 to 10% in the early 1960s. and up to 1.5-2% today.

In 2017, the positive dynamics of the chemical industry in France attracts attention . In 2017, production growth was 4.6%. The positive dynamics affected all sectors of the chemical industry, but especially organic chemistry products (+7.5%). The growth rate of the chemical industry in France in 2017 (+4.6%) was higher than in Germany (+2.6), however, in terms of production volume in France, it is still almost 2 times lower than the German level.

French foreign trade in 2017

French economy is one of the most open, occupying an important place in international trade, mainly within the European Union. In 2017 France's total exports amounted to 20.7% of the annual GDP, and imports - 23.5%.

France's foreign trade turnover in 2017 amounted to 1,009 billion euros (in FOB prices, excluding military supplies), while exports increased by 4.5% to 473 billion, while imports increased to 536 billion (+6.8%). The foreign trade balance has remained negative since 2002. In 2017, the deficit increased to 62.3 billion euros.

France's main trading partners in 2017 : Germany (turnover $185,378.8 million), Italy ($91,905.2 million), Spain ($84,387.6 million), USA ($82,905.1 million), Belgium ($82,329.7 million). The EU countries account for about 59% of France's foreign trade turnover.

Unemployment rate in France (2017)

By the end of 2017, the unemployment rate in France fell to 8.9% . This is the lowest unemployment rate since 2009. During the first three quarters of 2017, it was at the level of 9.5-9.6%.

In 2017, about 2.35 million people were employed in France. 45% of jobs were in business entities with up to 10 employees and 70% in enterprises with up to 50 employees. Among graduates of French universities, only 10% remain unemployed, and among those who chose not to receive higher education, unemployment is almost 50%.

Inflation rate in France (2017)

At the beginning of 2017, inflation in France was about 0.6% . However, throughout the year, the inflation rate in France gradually increased, reaching about 1.3% by December 2017. By April 2018, inflation had reached 1.6%, the highest level in five and a half years. In 2017, there was a decline in prices for industrial goods, while prices for food products, energy and services rose. In the first quarter of 2018, the growth in prices for services slowed down.

In 2015, there were 1.8 million dollar millionaires (US$) in France.24 In the same year, the average wealth per adult was US$262,100. Between 2007 and 2017, the wealth of French billionaires tripled. In 2017, the richest 10% of the French owned more than half of the national wealth, while the poorest 50% had 5%. In 2010, the Frenchman Bernard Arnault, owner of the French transnational company LVMH, became the richest European. The second richest woman in the world also turned out to be a Frenchwoman - Liliane Betancourt, heiress and first shareholder of L "Oreal.

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The primary sector of the French economy includes agriculture, fishing, logging and hunting. In the structure of the French economy, the weight of this sector declined sharply in the second half of the 20th century. Currently, only about 4% of all workers in the country are employed in the field of agriculture, fishing and forestry in France. At the same time, for example, in 2007, the primary sector ensured the reproduction of 2.2% of France's GDP. For comparison, in the European Union in 2007, 4.4% of employees worked in agriculture, fisheries and forestry, providing 2.1% of GDP.

France is one of the world's largest agricultural producers . In terms of cultivated area, it has the largest agricultural sector in Europe. In addition, it occupies one of the leading places in the world in terms of the number of cattle, pigs, poultry and the production of milk, eggs, and meat.

The main branch of agriculture in France is meat and dairy farming . France is also the largest producer of wheat and other cereals, corn, oilseeds, sugar beets, potatoes, grapes, and seeds and other planting materials. France ranks 1st in the EU for the production of animal feed. Fishing and oyster farming are highly developed (2nd place in the world after China).

A characteristic feature of the structure of agriculture in France is the presence of a large number of fairly small farms., whose average land area is less than 28 hectares, but at the same time, large farms are the leading force in production. 52% of agricultural land falls on farms larger than 50 hectares, which make up 16.8% of their total number. It is these farms that provide over 2/3 of products, occupying a dominant position in the production of almost all sectors of this sector of the economy.

France's agriculture is highly industrialized . In terms of saturation with machinery and the use of chemical fertilizers, it is second only to the Netherlands, Germany and Denmark. The technical equipment and improvement of the agricultural culture of farms has led to the fact that over the past three decades, France has maintained the status of a net exporter of agricultural products. The production of grain and sugar is twice the size of domestic consumption.

It is the basis of a strong industrial sector of the food industry (secondary sector).

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Crop production in France

Agriculture in mainland France has significant agricultural areas (about 1/2 ha per inhabitant) and a favorable geographical and climatic situation, located on the 45th parallel. Together with the support provided by the Common Agricultural Policy (CAP), these factors explain why France has become the leading agricultural country in the European Union with 18% of the European agricultural and agri-food product.

Among field crops, the largest areas in France are under cereals, mainly barley, corn, durum wheat, triticale, oats and rye.

About 2.23 million hectares are occupied under plantings of oilseeds in France. At the same time, about 2/3 of this area is occupied by rapeseed plantings, the yield of which is about 5.5 million tons.

France is also the world's first producer of flaxseed . About 56.6 thousand hectares are occupied by flax plantations in France, mainly lands located along the canals.

In French vegetable growing about 388,000 hectares of land are occupied. French agricultural production of fresh vegetables is around 5.5 million tonnes, making France the third largest producing country in the European Union.

Fruit production in France in 2009 it amounted to 2.797 thousand tons, of which more than half was the harvest of apples (France is the world's largest exporter of apples). Also in France, significant areas are occupied by plantings of peaches and nectarines, apricots, pears.

An essential role in agriculture in France plays winemaking, which is practiced by many farmers in France. For many years, about 450 large family farms, as well as tens of thousands of small ones, were engaged in winemaking in France.

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Sources:
French Economy Review 2017

Energy in France

France is among the ten most energy competitive countries , sharing 9th place with Finland and ahead of the UK and Germany. According to RTE, the country's electricity grid operator, in 2017, electricity generation in France fell by 0.3% and amounted to 475 terawatt-hours (TWh, TWh). The share of renewable energy (including hydropower) continued to grow, providing 24% of total energy consumption, breaking the previous year's record. In total, in 2017, electricity consumption in the country decreased by 0.5%.

Despite the refusal of a number of partners in the European Union, primarily Germany and Belgium, from the further development of the "peaceful atom", France is making significant efforts to increase its role in the industry, including at the international level. In 2017, the gradual departure of Paris from the previously announced ambitious plans to reduce the share of nuclear generation in the country's energy balance to 50% by 2025 continued. At present, the priority is to prolong the operation of existing nuclear power plants. According to the plan of the French Ministry of Energy, the extension of their service life will allow avoiding the large-scale costs associated with the withdrawal of nuclear generating facilities, dismantling of equipment and disposal of radioactive waste, which will reduce pressure on the national budget. The Nuclear Safety Regulator (ASN) believes that there is no reason to close nuclear power plants in France, but the level of reliability and safety of nuclear power plants should be increased. Precise estimates regarding the amount of funds required for such modernization have not yet been announced, however, the Regulator's experts suggest that they will reach more than 60 billion euros. At the moment, the final decision to shut down the reactors has been made only for the oldest operating nuclear power plant in France, Fessenheim.

National primary energy production in France is estimated at 125 million tons of oil equivalent. In 2017, there was a reduction in the generation of almost all its types, with the exception of renewable energy sources (RES) and thermal power plants. The return on renewable energy in 2017 increased by 1% and exceeded 32.5 TWh. The share of wind generators is growing significantly (plus 5% in the structure of RES). The production of photovoltaic energy is still only 0.9 million tons of oil equivalent.

Energy market in France 50% depends on the import of primary energy sources, primarily hydrocarbons, whose share in the country's energy balance is 49% (30% - oil and oil products, 14.1% - natural gas, 4.9% - coal).

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After stabilization in 2016 production in construction in France in 2017 increased sharply (+3.4% compared to 2016 figures) according to INSEE.

The French construction industry is one of the most developed in the world. . The developed engineering base, as well as the presence of a large amount of "know-how" in the field of construction, are traditionally considered the strengths of this segment of the country's economy. In France, various programs of environmentally friendly and innovative urban planning, housing construction, and landscaping are being implemented. In addition, the national industry in the production of building materials has great potential. The largest French companies in the industry are: "Vincy", "Eifage", "Lafarge", "Bouygues", "Saint-Gobain". Each of them has accumulated solid experience. All of these companies are widely represented in the markets of third countries.

In 2017, the situation in the French construction industry was characterized by consolidation of a number of positive trends emerging in 2016. Thanks to the measures of the government of the country aimed at improving the efficiency of the sector and the abolition of a number of obsolete regulations, the industry resumed its recovery after a long recession. An additional reason, in particular, was the stabilization of the growth rate of the French economy in 2017.

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French statistical reporting uses the term The "tertiary sector" (Secteur tertiaire) of the French economy . This sector of the economy includes all types of services provided by French companies and authorities, as well as some types of economic activities that, in our understanding, relate to other areas of the economy: trade, transport, banking, etc. Total, in the tertiary sector of the French economy, about 10 main areas of economic activity can be distinguished: trade, transport, financial activities, real estate transactions, business services, personal services, education and health services, social work, economic activities of the local administration.

The French economy is a service economy , which employs about 77% of the economically active population of the country (25.8 million people), while education, medicine account for 31% of employees, commerce 12.9%, science 9.5%, catering 3.5 %, finance and insurance 3.3%, information technology 2.8%.

The banking sector of the French economy

Some French banks and insurance companies (BNP Paribas, Societe Generale, Axa) occupy an important place in French banking sector . They are one of the largest companies employing the largest number of workers and employees. Given their impact on the economy (excessive lending was the cause of the crisis that began in 2008), their regulation remains a key issue for state control. Currently, the French authorities are making great efforts to reduce the influence of the country's major financial institutions on the French economy.

At the end of 2017, there were 347 banks in France with 37,261 branches (58,480 ATMs). According to the French Banking Association (www.fbf.fr), 99% of the country's citizens have accounts with credit institutions. On average, there are 556 branches per 1 million people.

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The exchange sector of the French economy

The Paris Bourse is the place where stocks, bonds and other securities are sold. French companies. In this regard, this French financial institution is an important source of financing for French enterprises, and also allows them to increase their own capital and attract additional investments, including foreign ones.

The Paris Stock Exchange is part of the international exchange system NYSE Euronext , formed as a result of the merger in 2000 of the stock exchanges of Paris, Amsterdam and Brussels, their merger with the Portuguese stock exchange in 2002, inclusion in the London LIFFE in the same year, and, finally, the merger with the New York Stock Exchange (NYSE) in 2007.

The main French stock market index is CAC-40 (Cotation Assistée et Continue) , which includes shares of the 40 largest issuers in terms of market capitalization and trading volumes. The base level of 1000 points was adopted as of December 31, 1987.

According to the expectations of the exchange market players, The Paris Bourse will continue its successful growth in 2018 for the third consecutive year. According to the forecasts of the most optimistic analysts, the CAC40 index can overcome the historical record level of 6,000 points thanks to the continued global economic growth and relatively low interest rates. Among the unfavorable factors hindering the growth of the stock market, is called a possible appreciation of the euro, slowdown in the US, the negative consequences of US protectionist policies, unsuccessful negotiations on "Brexit".

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Trade in the structure of the French economy

According to the General Directorate of Enterprises of the Ministry of Economy and Finance, in France, in the field of trade in 2017, there were 837.3 thousand enterprises (22% of all commercial firms in France, excluding agricultural enterprises). In 2015, there were 829.4 thousand of them. Of these, 63.1% were in retail trade. The total turnover of these companies amounted to 1,411.3 billion euros in 2016 against 1,408.8 billion euros in 2015 (+0.5%). The number of employed in 2016 amounted to 3.471 million people, 447 thousand more than in 2016.

Hyper- and supermarkets in France accounted for 74.3% of retail food sales in 2017. In total, there were 2,045 hypermarkets, 6,527 supermarkets and 4,042 discounters in the country. They are united in the category of "large retail facilities", which includes all stores with an area of ​​​​more than 400 m2. In this area, 90% of companies own only one store and they account for 58% of all sales. 36% of sales come from chains of 10 or more stores, although they represent only 0.2% of all enterprises in this area.

France sees significant growth in e-commerce in 2017 . In 2016, sales amounted to 72 billion euros and increased by 14.6% compared to 2015. The number of online trading platforms increased by 12% and reached almost 200 thousand. the volume of purchases per user amounted to 2,000 euros per year. At the same time, 57.7% of sales in this sector are accounted for by large traditional retail companies (hypermarkets for food and household goods, etc.).

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Insurance sector in France

In the insurance market in 2017, France ranked 2nd in Europe (after the UK) and 5th in the world (after the US, Japan, China and the UK). 99% of companies engaged in insurance in France are members of the French Federation of Insurance Societies (Fédération française des sociétés d "assurances), which unites 280 companies. About 45 million cars and more than 2 million businesses were insured in France in 2017 .

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Tourism in France

According to statistics from the French Ministry of Foreign Affairs, in 2017 France remains the most popular country for foreign tourists . For France, tourism is one of the key sectors of the economy. So, the volume of the French tourism market in 2017 amounted to about 8% of GDP , providing about 2 million jobs.

Normative legal regulation of relations in the field of tourism in France is carried out in accordance with the norms of the Code of Tourism (Code du tourisme). The functions of developing state policy in the field of tourism are carried out by the Directorate General for Entrepreneurship (Direction générale des entreprises, DGE), which is under the jurisdiction of the Ministry of Economy. Social policy in the field of tourism is carried out with the participation of the National Agency for Vacation Checks (L "Agence nationale pour les chèques-vacances), established in 1982. The main functions of the Agency are the development of social programs, in particular for the elderly, the disabled, single-parent families, and the issuance and sale of vacation checks (chèques-vacances).

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Transport in the structure of the French economy

France is the EU country with the highest road density . Their network has a length of over 950 thousand kilometers. In terms of the number of expressways, it ranks second in Europe. Currently transport network in France has the highest pavement density: 146 km of roads and 6.2 km of railways per 100 km2. The construction of the transport network in France is based on the principle of a web with Paris in the center.

basis transport industry in France freight transportation is carried out primarily by pipelines and rail transport. Passenger transportation within the country is carried out mainly by rail and road transport, while international transportation is carried out by air, which has recently had significant competition from rail transport (after the advent of high-speed trains).

The largest ports of France, carrying out cargo transportation: Marseille (4th place among European seaports) and Le Havre (6th place among European seaports).

According to French airport associations (UAF), total number of passengers served in 2017 by French airports (including those located in overseas territories) was 162 million, including 43 million on domestic lines and 119 million on international lines. The main traffic fell on the Île-de-France region, which served 87 million passengers, including 73 million on external lines.

Metros play a significant role in passenger transportation in France. . The oldest subway in France was built in Paris. In the second half of the 20th century, metro lines were built in other, the largest, cities of France: in Lille, Lyon, Marseille, Toulouse and Rennes.

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Other branches of the tertiary sector of the French economy

In addition to trade, transport, tourism, financial institutions of the economy, to the tertiary sector of the French economy includes education, science, healthcare, postal services and information technology. At the same time, in recent years, their importance in the formation of the nationwide volume of GDP is becoming increasingly large. For example, french healthcare system recognized as one of the best in the world, and the volume of performed healthcare services has been growing every year for the past 30 years. Recently, the French healthcare system has focused on high technological equipment and the provision of services to foreign citizens. In addition, pharmaceutical production plays a large share in the formation of the added value of the healthcare sector.

Thanks to the development of the medical care system, in this direction is developing science industry in France , which is increasingly becoming an economically sound operation, when specific scientific developments are sponsored by investors with the aim of their further use for commercial purposes and additional profit.

In addition to the areas of healthcare and science, France is becoming commercialized education system . The services of French colleges and universities are used by an increasing number of foreigners.

So to these three areas of the tertiary sector of the French economy are the greatest hopes of the French Government. In this regard, the volume of appropriations in the spheres of healthcare, science and education has recently been increasing with the aim of their further commercialization and promotion to foreign markets.

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Growth continued in 2017 (+3%) French information technology market , which amounted to about 67 billion euros. The largest added value in this sector is provided by specialized services (78%) related to telecommunications, software development, data processing, and the development of computer components (22%).

At the end of the reporting period There are four main telecom operators in France : "Bouygues Telecom", "Orange", "Free Mobile", "SFR", whose total income is estimated at 36.1 billion euros.

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Postal services in France

To date Group la Poste is one of the largest employers in France by the number of employees. 253,219 people provide French residents with mail and parcel delivery services 6 days a week, contribute to the development of territories, carry out press delivery, and banking services.

For Post of France, which is the leader in the delivery of postal parcels , this meant the need to deliver 318 million parcels to Colissimo, which led to an overload of its logistics apparatus, whose production capacity is currently limited to 300 million parcels. In order to increase production capacity to 400 million by 2020, the French Post will invest in the latest hardware and software. Next year, three new platforms specializing in parcel delivery will open, and the fourteen platforms that already exist will be expanded and modernized.

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