Economy - overview:
France is in the midst of transition, from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The government has partially or fully privatized many large companies, banks, and insurers. It retains controlling stakes in several leading firms, including Air France, France Telecom, Renault, and Thales, and is dominant in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. The government has lowered income taxes and introduced measures to boost employment and reform the pension system. In addition, it is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The tax burden remains one of the highest in Europe (43.8% of GDP in 2003). The lingering economic slowdown and inflexible budget items have pushed the budget deficit above the eurozone's 3%-of-GDP limit. Finance Minister Herve GAYMARD has promised that the 2005 deficit will fall below 3%.
GDP:
purchasing power parity - $1.737 trillion (2004 est.)
GDP - real growth rate:
2.1% (2004 est.)
GDP - per capita:
purchasing power parity - $28,700 (2004 est.)
GDP - composition by sector:
agriculture: 2.7%
industry: 24.3%
services: 73% (2004 est.)
Labor force:
27.7 million (2004 est.)
Labor force - by occupation:
agriculture 4.1%, industry 24.4%, services 71.5% (1999)
Unemployment rate:
10.1% (2004 est.)
Population below poverty line:
6.5% (2000)
Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 25.1% (1995)
Distribution of family income - Gini index:
32.7 (1995)
Inflation rate (consumer prices):
2.3% (2004 est.)
Investment (gross fixed):
19.2% of GDP (2004 est.)
Budget:
revenues: $1.005 trillion
expenditures: $1.08 trillion, including capital expenditures of $23 billion (2004 est.)
Public debt:
67.7% of GDP (2004 est.)
Agriculture - products:
wheat, cereals, sugar beets, potatoes, wine grapes; beef, dairy products; fish
Industries:
machinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourism
Industrial production growth rate:
1.7% (2004 est.)
Electricity - production:
528.6 billion kWh (2002)
Electricity - consumption:
414.7 billion kWh (2002)
Electricity - exports:
79.9 billion kWh (2002)
Electricity - imports:
3 billion kWh (2002)
Oil - production:
34,920 bbl/day (2001 est.)
Oil - consumption:
2.026 million bbl/day (2001 est.)
Oil - exports:
409,600 bbl/day (2001)
Oil - imports:
2.281 million bbl/day (2001)
Oil - proved reserves:
144.3 million bbl (1 January 2002)
Natural gas - production:
1.898 billion cu m (2001 est.)
Natural gas - consumption:
42.01 billion cu m (2001 est.)
Natural gas - exports:
1.725 billion cu m (2001 est.)
Natural gas - imports:
40.26 billion cu m (2001 est.)
Natural gas - proved reserves:
12.86 billion cu m (1 January 2002)
Current account balance:
$-305 million (2004 est.)
Exports:
$419 billion f.o.b. (2004 est.)
Exports - commodities:
machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages
Exports - partners:
Germany 15%, Spain 9.4%, UK 9.3%, Italy 9%, Belgium 7.2%, US 6.7% (2004)
Imports:
$419.7 billion f.o.b. (2004 est.)
Imports - commodities:
machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals
Imports - partners:
Germany 19.2%, Belgium 9.8%, Italy 8.8%, Spain 7.3%, UK 7%, Netherlands 6.7%, US 5.1% (2004)
Reserves of foreign exchange and gold:
$70.76 billion (2003)
Debt - external:
$NA
Economic aid - donor:
ODA, $5.4 billion (2002)
Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries
Exchange rates:
euros per US dollar - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)
Fiscal year:
calendar year
