Economic Environment
Of
FRANCE
Submitted by Class
Tejas Rao G S 1st Sem MBA
Economic Environment of France
Demographics:
The demography of France is monitored by the Institut national d'études
démographiques (INED) and the Institut national de la statistique et des études
économiques (INSEE).
As of 1 January 2021, 67.4 million people lived in France, including the 13 metropolitan
regions (65,249,843), which is mainland France located in Europe and the 5 overseas
regions (2,172,398), but excluding the overseas collectivities and territories (604,000).
In March 2017, the population of France officially reached the 67,000,000 mark. It had
reached 66,000,000 in early 2014.[5] Between the years 2010–17, the population of
France grew from 64,613,000 to 66,991,000 (i.e. about 2.4 million people in a span of 7
years), making France one of the fastest-growing countries in Europe. The population of
France is growing by 1,000,000 people every three years- an average annual increase of
340,000 people, or +0.6%.
Area:
Area of metropolitan France as 551,500 km2 (212,900 sq mi) and lists overseas regions
separately, whose areas sum to 89,179 km2 (34,432 sq mi)
France is divided into eighteen administrative regions of which thirteen are located in
metropolitan France (on the European continent).
Inflation
In 2019, the inflation rate in France was at about 1.3 percent compared to the previous
year.
France: Inflation rate from 1985 to 2025 (compared to the previous year).
Inflation rate compared to previous year Inflation rate
2022* 0.98%
2021* 0.63%
2020* 0.46%
2019 1.3%
Financial market
Although the French financial sector employed less than 13 percent of the labour force in
the early 21st century, it accounted for roughly one-third of the country's total GDP.
Home to some of Europe's largest banks and its second largest stock exchange, France is
a key player in the continent's financial markets.
Gross valve added
Gross value added in France by sector 2010-2018. ... The sector with the highest level
of GVA over the years was non-financial corporations, reaching 1,217 billion euros in
2018.
Developing sector
The economy of France is highly developed and free-market-oriented.[24] It is the
world's seventh-largest economy by 2020 nominal figures and the tenth-largest economy
by PPP.
As of September 30, 2020, it is the 3rd largest economy of Europe, after the economy of
Germany and the United Kingdom.
Import and export
France also exports a number of valuable commodities including machinery and
transportation equipment, aircraft, plastics, chemicals, pharmaceuticals, iron,
steel, consumer products, petroleum and cars & vehicles
Export partners of France
Germany: US$69.1 billion (14.5% of total French exports)
United States: $37 billion (7.8%)
Italy: $36.8 billion (7.7%)
Spain: $35.2 billion (7.4%)
Belgium: $35.2 billion (7.4%)
United Kingdom: $30.9 billion (6.5%)
China: $20.1 billion (4.2%)
Per capita income
USD 44,769.8.
In 2019, GDP per capita in France was at around 41,896.58 US dollars.
GDP per capita in U.S. dollars
2023* 48,579.22
2022* 46,833.62
2021* 44,769.8
2020* 39,257.43
Empolyment scenario
In this scenario, the level of net new job creation reaches 240,000 jobs per
annum– equivalent to GDP growth of 2.1 per cent
Gold reserve
Gold Reserves in France increased to 2436.19 Tonnes in the fourth quarter of 2020 from
2436.10 Tonnes in the third quarter of 2020.
Foreign exchange reserves
The average value for France during that period was 65.42 billion U.S. dollars with a
minimum of 2.3 billion U.S. dollars in 1960 and a maximum of 189.01 billion U.S.
dollars in 2019.
France: Foreign exchange reserves including gold, billion USD.
Year Value
2017 156.32
2018 166.48
2019 189.01
Tourists arrivals
A total of 89.4 million visitors in 2018 jumped up by 3% from 2017.
France is now targeting 100 million foreign tourists for 2020.
Paris tourism statistics have seen a record number of visitors, surpassing 40 million in 2018.
France is the most visited country in the world.
Investment opportunities
Those looking to invest in France have several different options, ranging from exchange-traded
funds (ETFs) to American Depository Receipts (ADRs).
Alternative Methods to Invest in France
Veolia Environment (VEOEY)
AXA (AXAHY)
L'Oreal (LRLCY)
Suez (SZSAY)
LVMH (LVMUY)4
Taxation
less than 50% of inhabitants in France pay any income tax at all; only around 14% pay
at the rate of 30%, and less than 1% pay at the rate of 45%. ... As can be seen, a couple
with no dependants would not pay any income tax in 2021 if their net taxable income in
2020 was no greater than €28,617.
Transportation : land ,air and water
Transportation in France relies on one of the densest networks in the world with 146 km
of road and 6.2 km of rail lines per 100 km2. It is built as a web with Paris at its
center. Rail, road, air and water are all widely developed forms of transportation
in France.
Infrastruture
France enjoys one of the most sophisticated infrastructures in the world, developed
through the govern-ment's heavy investment in the field and made possible by advanced
technology. A network of various modes of transportation blankets the whole country,
including air, land, and rail transportation.
