France Economy 2008

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. Widespread opposition to labor reform has in recent years hampered the government's ability to revitalize the economy. In 2007, the government launched divisive labor reform efforts that will continue into 2008. France's tax burden remains one of the highest in Europe (nearly 50% of GDP in 2005). France brought the budget deficit within the eurozone's 3%-of-GDP limit for the first time in 2007 and has reduced unemployment to roughly 8%. 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):
$2.067 trillion (2007 est.)

GDP (official exchange rate):
$2.244 trillion (2007 est.)

GDP - real growth rate:
1.8% (2007 est.)

GDP - per capita (PPP):
$33,800 (2007 est.)

GDP - composition by sector:
agriculture: 2%
industry: 20.7%
services: 77.3% (2007 est.)

Labor force:
27.76 million (2007 est.)

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

Unemployment rate:
8% (2007 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:
28 (2005)

Inflation rate (consumer prices):
1.5% (2007 est.)

Investment (gross fixed):
20.7% of GDP (2007 est.)

Budget:
revenues: $1.311 trillion
expenditures: $1.372 trillion (2007 est.)

Public debt:
66.6% of GDP (2007 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:
1.6% (2007 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:
73,180 bbl/day (2005 est.)

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

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

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

Oil - proved reserves:
158.4 million bbl (1 January 2006 est.)

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:
-$35.94 billion (2007 est.)

Exports:
$558.9 billion f.o.b. (2007 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:
$601.4 billion f.o.b. (2007 est.)

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, $12 billion (2006)

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

Debt - external:
$4.396 trillion (30 June 2007)

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 - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)