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 |
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| Key
Economic Indicators |
| GDP
(purchasing power parity) |
$
1.22 trillion (1996 EST) |
| Growth rate |
1.3% |
| GDP per capita |
$ 20,900 |
| GDP composition by sector |
Agriculture 2.4%
Industry 26.5%
Services 71.1% |
| Inflation rate |
Consumer Price
Index 1.7% (1996) |
| Labour force total |
25.5 million
By occupation Services 69%
Industry 26%
Agriculture 5% |
| Unemployment rate |
12.7% (1996) |
| |
| Key
Economic Indicators (US $ billion) |
| |
1995 |
1996 |
1997 |
| Nominal GDP |
1,535 |
1,539 |
1,351 |
| Real GDP growth |
2.1 |
1.5 |
2.3 |
| GDP by sector |
1,985 |
1,980 |
- |
| Agriculture |
36 |
36 |
- |
| Manufacturing |
408 |
399 |
- |
| Services |
1,276 |
1,278 |
- |
| Govt. and non-profit
services |
264 |
268 |
- |
| Per capita GDP |
26,422 |
26,403 |
23,482 |
| Consumer price
inflation |
1.8 |
2.0 |
1.1 |
| Balance
of Payment and Trade |
| Total Exports (FOB) |
284 |
215 |
186
(7 months) |
| Total Imports (CIF) |
271 |
198 |
172 (7 months) |
| Trade Balance |
13 |
17 |
15
(7 months) |
General
In terms of GDP, France is the world’s fourth largest economic
power. In 1997, its Gross Domestic Product was US$ 1,351 billion.
GDP grew by 2.3% in real terms and 3.3% in nominal terms in the year
1997. This was an improvement over 1.6% real growths in 1996. In terms
of international trade, France is the fourth largest importer and
exporter in the global market and is the world leader in high technology,
defence, agricultural products and services.
France has substantial agricultural resources and a diversified modern
industrial sector. Large tract of fertile land, the applications of
modern technology, and subsidies have combined in making it the leading
agricultural producer in Western Europe. France is the major exporter
of wheat and diary products. The Industrial sector generates one quarter
of the GDP and the growing services sector has become crucial to the
economy.
Industry
French industry is the fourth largest producer and exporter among
the OECD countries. It is responsible for 30% of the country’s
jobs and 40% of its investments. The industry sector also represents
80% of its exports. Major industrial sectors in France are construction
and civil engineering, food stuffs, chemicals, rubber and plastics,
pharmaceuticals and automobiles.
Semi manufactured goods represent 32.8% of production in manufacturing,
investment goods 26.8%, consumer goods 25.9%, the automobile industry
13.1%, and consumer durable goods 1.4%. The Public sector is responsible
for nearly 15% of total turnover and almost 20% of exports. Large
companies with more than 500 employees generate 48% of jobs, 59% of
sales and over 72% of exports. Small and medium sized companies are
also important in the industrial make-up and their adaptability has
enabled them to register a sharp upswing in the past 20 years. They
are particularly active in the food, construction and garment industries.
Agriculture
In 1996, French agricultural production represented 21.3% of the fifteen
EEC countries' production as a whole, making France Europe’s
number-one farm country, establishing a convincing lead over Italy
and Germany. The agriculture sector accounted for 2.6% of the GDP
in 1994. In value terms France is the second biggest exporter of processed
foods in the world. Principal agricultural products in France are
sugar beet, wine, milk, cereals and oil seeds. France is the major
producer of sugar beet in the EU and the second largest producer in
the world.
Services
Banking and Insurance plays an important role in the service sector.
Four French Banks are among the world’s top twenty-five. The
French Insurance sector has consolidated its position as the fourth
largest in the world, with a turnover of 950 billion francs. The insurance
sector has provided about 200,000 jobs in France. In 1995 the tourism
industry supplied more than 1.5 million jobs directly or indirectly
and brought about 137 billion francs ($ 27.4 billion) of foreign currency
into the country. Today France attracts more tourists than any other
country with 60.5 million foreign visitors, providing a trade surplus
of nearly 60.5 billion francs ($ 12 billion) in this sector.
Investment and Investment Climate
The French government actively courts foreign investments by offering
a variety of incentives to foreign investors. Investment promotion
agency DATAR provides extensive assistance to potential investors
both in France and through its agencies to the world.
France ranks fourth internationally for direct inward investment.
Foreign investors appreciate the skills of French workers, the advanced
level of research, the mastery of high technology, the stable currency
and control of production costs.
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