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El context econòmic de França

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

France is ranked as the world’s seventh largest economic power, just behind the United Kingdom and India. The country’s recovery from the 2008 economic crisis has come later than in other European countries and remained fragile due to structural imbalances. In 2020, due to the COVID-19 pandemic, France suffered one of the sharpest economic contractions among EU countries (-8%), but the economy started to recover in 2021. According to IMF estimates, GDP growth amounted to 6.3% in 2021, driven by public support and by solid private sector led investment. Growth is expected to moderate to 3.9% in 2022 and 1.8% in 2023, subject to continued containment of COVID-19, normalization of supply chain difficulties, and a continued accommodative policy environment (IMF).

In 2020, France was among the most affected countries from the COVID-19 pandemic, but the economy started to recover in 2021 thanks to expansive fiscal support and effective containment of the virus (IMF). The large emergency support package adopted in 2020, which focused on supporting households and firms by preserving jobs and providing liquidity, was increased in 2021 in the context of the third partial lockdown. The total envelope for crisis and recovery measures for 2020–22 amounted to 28% of the country’s GDP (IMF). As a result of these support measures and falling revenues, budget deficit further increased to -7.5% GDP in 2021, and is forecast to decrease but remain at a high level in 2022 (-4.6% GDP) and 2023 (-3.9% GDP) (IMF). Public debt, which was already one of the highest in the Eurozone, soared to 115.8% GDP in 2021, and is forecast to stay very high in 2022 (113.5% GDP) and 2023 (114.6% GDP). Due to spike in energy prices and supply chain bottlenecks, inflation increased from 0.5% in 2020 to 2% in 2021 (IMF). It is expected to drop to 1.6% in 2022 and 1.2% in 2023 (IMF). The priorities for 2022 will include the continuation of the implementation of the Plan de Relance designed to support French businesses, minimise the rise in unemployment, and facilitate the green and digital transitions. The France 2030 plan will aim at boosting critical innovation and investment. In addition to the risk posed by a prolongation of the health crisis into 2022 due to increasingly virulent new strains of the virus and waning vaccine effectiveness, France faces structural challenges: high structural unemployment, weak competitiveness, and high public and private debt burdens. High unemployment rates, especially among youth, remain a growing concern for policymakers.

Unemployment rate, which was declining before the pandemic, reached an estimated 8.1% in 2021 and is expected to increase to 8.3% in 2022 before declining to 8% in 2023 (IMF). The deployment of short-time work scheme limited large-scale employment losses. Social mobility remains low and the employment rates of many disadvantaged groups are poor.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 2,728.832,624.422,940.433,140.033,281.71
GDP (Constant Prices, Annual % Change) 1.8-8.0e6.73.51.8
GDP per Capita (USD) 41,990e40,29945,02847,95249,975
General Government Balance (in % of GDP) -2.1-6.3-7.5-4.6-3.9
General Government Gross Debt (in % of GDP) 97.6115.1e115.8113.5114.6
Inflation Rate (%) 1.30.52.01.61.2
Unemployment Rate (% of the Labour Force) 8.48.0e8.18.38.0
Current Account (billions USD) -7.93-49.85-48.99-44.34-34.47
Current Account (in % of GDP) -0.3-1.9-1.7-1.4-1.1

Source: IMF – World Economic Outlook Database, October 2021

Note: (e) Estimated Data

Main Sectors of Industry

France is the largest agricultural power in the European Union, accounting for one-fourth of the EU’s total agricultural production. Nevertheless, the agricultural sector only represents a very small part of the country's GDP (1.6%) and employs 3% of the population (World Bank). French agricultural activities receive significant subsidies, especially from the European Union. Wheat, corn, meats and wine are France's main agricultural products.
France's manufacturing industry is highly diversified; however, the country is currently undergoing a de-industrialisation process, which has resulted in the outsourcing of many activities. Industry represents 16.4% of GDP and employs a fifth of the active workforce (World Bank). The key industrial sectors in France are telecommunications, electronics, automobile, aerospace and weapons.

The tertiary sector represents 71.2% of the French GDP and employs 77% of the active workforce (World Bank). France is the leading tourist destination in the world with a record of 91 million foreign visitors in 2019. The discovery of the cultural and gastronomic heritage of France and shopping are the main activities popular with foreign tourists.

In 2020, due to the COVID-19 pandemic, the lockdown measures caused an unprecedented loss of activity in virtually all sectors. The most sharply impacted include tourism, automobiles, transport and aerospace, while the agri-food and pharmaceuticals sectors have been resilient. Despite the persistence of the pandemic, most sectors started to recover in 2021. Sales in aeronautics were up 24% in Q2 2021 compared to Q1 2021 (Coface), and tourism growth was estimated at 35% pour 2021 (WTTC).

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.5 20.4 77.0
Value Added (in % of GDP) 1.6 16.4 71.2
Value Added (Annual % Change) -0.1 -11.2 -7.4

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:
65,7/100
World Rank:
64
Regional Rank:
34

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

Business environment ranking

Definition:

The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Score:
7.74/10
World Rank:
15/82

Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024

 

Country Risk

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Actualitzacions: May 2022

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