France Economy 2007

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, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence 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 in 2006 focused on introducing measures that attempt to boost employment through increased labor market flexibility; however, the population has remained opposed to labor reforms, hampering the government's ability to revitalize the economy. The tax burden remains one of the highest in Europe (nearly 50% of GDP in 2005). The lingering economic slowdown and inflexible budget items probably pushed the budget deficit above the eurozone's 3%-of-GDP limit in 2006; unemployment hovers near 9%. With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.

GDP (purchasing power parity):
$1.902 trillion (2006 est.)

GDP (official exchange rate):
$2.151 trillion (2006 est.)

GDP - real growth rate:
2.2% (2006 est.)

GDP - per capita (PPP):
$31,200 (2006 est.)

GDP - composition by sector:
agriculture: 2%
industry: 20.7%
services: 77.2% (2006 est.)

Labor force:
27.75 million (2006 est.)

Labor force - by occupation:
agriculture: 4.1%
industry: 24.4%
services: 71.5% (1999)

Unemployment rate:
8.7% (2006 est.)

Population below poverty line:
6.2% (2004)

Household income or consumption by percentage share:
lowest 10%: 3%
highest 10%: 24.8% (2004)

Distribution of family income - Gini index:
26.7 (2002)

Inflation rate (consumer prices):
1.7% (2006 est.)

Investment (gross fixed):
20.5% of GDP (2006 est.)

Budget:
revenues: $1.152 trillion
expenditures: $1.211 trillion (2006 est.)

Public debt:
64.2% of GDP (2006 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:
0.2% (2006 est.)

Electricity - production:
543.6 billion kWh (2005)

Electricity - consumption:
451.5 billion kWh (2005)

Electricity - exports:
68.33 billion kWh (2005)

Electricity - imports:
8.035 billion kWh (2005)

Oil - production:
73,500 bbl/day (2005 est.)

Oil - consumption:
1.97 million bbl/day (2005 est.)

Oil - exports:
474,200 bbl/day (2005)

Oil - imports:
1.89 million bbl/day (2005)

Oil - proved reserves:
159 million bbl (1 January 2006)

Natural gas - production:
1.4 billion cu m (2004 est.)

Natural gas - consumption:
47.26 billion cu m (2005 est.)

Natural gas - exports:
863.2 million cu m (2005 est.)

Natural gas - imports:
47.02 billion cu m (2005)

Natural gas - proved reserves:
341 billion cu m (1 January 2006 est.)

Current account balance:
$-28.32 billion (2006 est.)

Exports:
$483.1 billion f.o.b. (2006 est.)

Exports - commodities:
machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages

Exports - partners:
Germany 15.6%, Spain 9.6%, Italy 8.9%, UK 8.2%, Belgium 7.2%, US 6.7%, Netherlands 4% (2006)

Imports:
$520.8 billion f.o.b. (2006 est.)

Imports - commodities:
machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals

Imports - partners:
Germany 19%, Belgium 11%, Italy 8.3%, Spain 7%, Netherlands 6.7%, UK 6.5%, US 4.6% (2006)

Economic aid - donor:
ODA, $10.1 billion (2006)

Reserves of foreign exchange and gold:
$98.24 billion (2006 est.)

Debt - external:
$3.461 trillion (30 June 2006)

Stock of direct foreign investment - at home:
$697.4 billion (2006 est.)

Stock of direct foreign investment - abroad:
$1.005 trillion (2006 est.)

Market value of publicly traded shares:
$1.71 trillion (2005)

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 - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)