France gdp structure. Economic growth in France. State structure of France
France is currently in the midst of a transition from a wealthy modern economy that has a large share of state ownership and intervention to one that relies more on market mechanisms. The government has privatized, in part or in whole, many large industrial and insurance companies and banks, and has ceded stakes in such leading companies as Air France, France Telecom, Renault, and Thales. However, the state retains a significant presence in some sectors, especially in the energy, public transport and defense industries. France is the most visited country in the world (over 75 million tourists annually) and maintains the third largest tourism income in the world.
France's leaders remain committed to capitalism, in which they support the social sphere through laws, tax policies and social spending that reduce income inequality and the impact of free markets on health and welfare. France weathered the global economic crisis better than most other major EU economies due to the relative resilience of domestic consumer spending, a large public sector, and less reliance on falling export demand than some other countries.
However, France's real GDP contracted 2.5% in 2009 but recovered partly in 2010, while the unemployment rate increased from 7.4% in 2008 to 9.5% in 2010. Active government stimulation of the economy and investment measures in response to the economic crisis, however, contributed to the deterioration of the financial condition of France. France's fiscal deficit widened from 3.4% of GDP in 2008 to 6.9% of GDP in 2010, while public debt rose from 68% of GDP to 82% over the same period.
The share of foreign capital in the French economy is large (industry up to 40%, real estate about 27.5%, trade - 20%, services - 9%). More than 20% of workers work at enterprises with foreign capital. The share of foreign capital in computer science and other branches of advanced technology is especially large (over 50%). Paris is currently scaling back stimulus measures, removing tax breaks and freezing most government spending to bring the budget deficit to 3% in line with Eurozone norms by 2013. The government has highlighted France's commitment to fiscal discipline at a time of rising debt elsewhere in the Eurozone and volatility in financial markets. President Nicolas Sarkozy - the one who brought about the pension reform in 2010 - is expected to look for opportunities for some tax reforms, but he could delay additional, more costly reforms until the end of the 2012 elections.
A traditional feature of French economic policy is a large share of the public sector, especially in strategically important areas - the oil and gas industry, transport. There is planning, but it is not normative, but indicative (the targets are not normative for private enterprises). The share of foreign capital in the economy is large (industry up to 40%, real estate about 27.5%, trade - 20%, services - 9%). More than 20% of workers work at enterprises with foreign capital. The share of foreign capital in computer science and other branches of advanced technology is especially large (over 50%).
France has the most developed rail network in Europe. Since 1981, most cities have been linked by a network of high-speed highways; the same line has been laid in a tunnel under the English Channel. The level of social protection of the population is one of the highest in the world. Approximately 30% of GDP is spent on social needs. In 1998-2008. a 35-hour work week was officially established (the shortest in Europe), but it was canceled in 2008, now the employer has the right to conclude individual agreements with trade unions and determine the number of working hours and overtime.
In 2007, trade with Russia amounted to 16.7 billion euros according to French statistics, 16.4 billion dollars according to Russian statistics.
Development history and main features of the French economy
France is one of the largest capitalist powers; it is located in the western part of the European mainland. The territory of France is 552 thousand km2, and the population is about 46 million people. From the south, the country is washed by the warm waters of the Mediterranean Sea, in which the island of Corsica belongs to France. On the western shores of the country, the noisy breath of the Atlantic Ocean waves does not stop either day or night. And from the northern neighbor - Great Britain - France is separated by the sea straits of the English Channel and the Pas-de-Calais. To the northeast, in Flanders and the Ardennes, France borders Belgium and Luxembourg.
Further to the east, the domed peaks of the Vosges rise. The Franco-German border passes here. Reaching r. Rhine, the border pillars turn sharply to the south, rising higher and higher: first to the mountain slopes of the Jura, along which the border with Switzerland passes, and then to the snow-covered ridges of the Alps separating France from Italy. Here is the highest mountain in Western Europe - Mont Blanc (4810 m).
Alpine ridges are cut by deep and rather wide valleys, convenient for communication. In the southwest lies the less high, but inaccessible mountain system of the Pyrenees. It forms the natural border of France with Spain and the small state of Andorra.
In ancient times, tribes of the Celts (Gauls) lived on the territory of modern France and the country was called Gaul. In the V century. Gaul was conquered by the Franks - a people who came from the right bank of the Rhine (from them the country got its name - France). The Franks assimilated with the Celts.
During the period preceding the Second World War, the French government, together with the governments of Great Britain and the United States, condoned the aggressive policy of Nazi Germany. It did not prevent the German fascists from occupying Austria and Czechoslovakia and thus contributed to the outbreak of the Second World War. After Germany attacked Poland, France's ally in 1939, the outrage of the French people forced the government to declare war on Germany. But it was a "strange war." The French military command was not going to fight Hitler, and when Hitler's troops invaded France in May 1940, the reactionary French government surrendered Paris and capitulated to the fascist aggressors. But at the end of 1944, French patriots, inspired by the victories of the USSR and its allies over Nazi Germany, liberated their country from the German invaders with the help of the Anglo-American troops. There were also many military conflicts in which France took part. For several years the French imperialists waged a war against insurgent Vietnam. For 7 years they fought a war in Algeria, whose people demanded independence. In 1956, France, together with Great Britain and Israel, began an armed intervention in Egypt. But Egypt was supported by many peace-loving countries (including the USSR). In 1961, the Secret Armed Organization (OAS) stepped up its activities in France. A threat of fascism arose in the country, but the government managed to resolve this difficult situation. France is a highly developed industrial and agricultural country. In terms of industrial production, it ranks fourth after the United States, England and the former Germany. Its industry and agriculture are as diverse as the natural conditions of the country.
The mines in France produce a lot of iron ore and bauxite, coal and potash salts; hydroelectric power plants have been built on mountain rivers. At machine-building factories, with the skillful hands of French workers, automobiles and locomotives, machine tools and tractors, motors and various equipment are created; in the shipyards of port cities, ships are being built. Chemical plants produce acids, artificial fibers, dyes, plastics, medicines. France has long been famous for its perfumery products. Textile factories produce cotton and linen fabrics, from synthetic and natural silk.
France is a maritime country. At the northern borders, its cold, leaden waves splash along the steep shores, wash out soft limestone rocks and form rocks of the most bizarre shape. People had to work hard to create ports convenient for sea vessels. The largest of them - Le Havre - is located in the wide mouth of the river. Seine. A powerful concrete dam protects numerous marinas and docks from the sea. Only a gate is left in the dam ”, through which nimble tugs pull ocean ships on long ropes to the port. Ships flying the flags of various countries bring bales of cotton and wool, bags of coffee and rice, rubber, mahogany for making expensive furniture, spices and other goods to the Port of Le Havre.
The capital of France, Paris is a huge, many-sided city. The population of Paris together with the suburbs reaches 7 million people. "Greater Paris" is spread over an area of 1500 km2. It arose 2,000 years ago from a small village of Lutetia on the Ile de la Cité, in the middle of the Seine.
In terms of economic development, it is inferior to Germany and a number of small countries (Norway, Denmark, Switzerland, Luxembourg). France accounts for 17% of industrial and 20% of agricultural production in Western Europe.
In the 1980s. the economic development of France was characterized by slow growth rates, mass unemployment, and abrupt changes in the main directions of state regulation. The structural crisis of the world economy, the transition to a new type of reproduction had a strong impact on industrial production. After the crisis of the 1980s, French industry recovered its production level only in 1986.
France's position in the world economy has somewhat weakened (1980 - 5.7% of the world's GDP). The country's share in industrial production in OECD countries fell from 6.6% to 5.7% in the 1980s. Export opportunities have diminished. The unemployment rate has exceeded 10%.
In the 1990s, French industry was still underspecialized, struggling to adapt to rapidly changing market demand. The relatively low efficiency of the production apparatus was associated with the historical features of the development of the economy, which in the 50-60s. mainly focused on the domestic market, and in foreign relations, developing countries occupied a large place, mainly within the former colonial empire. An important role in this process was played by the dominance in the structure of the economy of the credit sector, which usually shows excessive caution in the implementation of long-term industrial projects.
At the same time, France was actively involved in the processes of restructuring the social structure of the economy, concentration and centralization of production and capital. One hundred largest companies concentrated over 2/3 of industrial production. In a number of industries, monopolization of production is approaching its maximum. In the iron and steel industry, the two largest companies Unizor and Sacilor concentrated 70% of steel production, Company General d Electricite (KZhE), Thomson - 50% of the production of electronic and electrical equipment, Renault and Peugeot - almost all car production. Peshine Yuzhin-Kühlman (PYUK) and Imetal - almost entirely concentrated in their hands the production and sale of non-ferrous metals.
The processes of concentration and centralization of capital and the restructuring of the French economy took place simultaneously with the process of internationalization of production and capital, which led to the creation of huge TNCs. So, “Imetal” united 62 companies operating in 25 countries. Renault has almost 45% of its production capacity and 25% of its workforce overseas and so on.
The centralization of capital at the national and international level has led to the strengthening of a number of French companies in world production. The chemical company Peshine has become the world leader in packaging products, the printing company Ashet has become the leading publisher of magazines in the world, and the Cabl de Lyon company has become the first in the world in the production of electrical cables. The Thomson electrical concern took first place in the world in the production of navigation equipment for aircraft, and in Europe in the production of consumer electronics. Imetal occupies a leading position in the production of lead, zinc, nickel in industrialized countries. In Western Europe, Aerospace and Dassault-Breguet ranked first and third in the aerospace industry, respectively. The positions of French companies among the largest corporations in Western Europe and the world have been strengthened. The list of the 100 largest companies includes 8 French associations (1961 - 2).
French banks have always actively participated in the activities of industrial companies through a system of participation in the ownership of share capital, using, among other things, holding companies, investment funds, personal union. The process of interweaving capital has led to the fact that the entire economy is embraced by several financial groups with wide international connections. These are the Nariba and Soyuz groups, the Rothschild and Ampen-Schneider groups. Financial groups have a significant impact on the formation of economic policy.
The interests of the largest companies were defended by the National Council of French Entrepreneurs (Patronate), as well as various sectoral, intersectoral and regional organizations of entrepreneurs, which are powerful levers of pressure on the government.
Small business plays an active role in the country's economy. Small and medium-sized enterprises, strengthening their positions in the period 1970-80s. The small sector is very mobile. 30% of registered business units fail after two years, and every second falls short of five years. The number of firms going bankrupt is high. An obstacle in the activities of new companies is the lack of accumulation of initial and working capital. The small sector is mainly focused on services and trade.
The functioning of the economic system takes place under the powerful influence of the state on the reproduction process. In terms of the degree of development of the mining and metallurgical complex, manifested in the active participation of the state in the regulation and programming of the economy, in the spread of state ownership, France stands out among the largest industrialized countries. In the 1980s. there was a change in the main directions of economic policy from direzhism to neoliberalism, to the strengthening of the role of the market. Changes in the alignment of political forces at the government level, which primarily manifested itself in relation to the public sector, had a great influence on economic policy. In 1981, the socialist government nationalized 9 largest industrial companies and 36 banks. The public sector concentrated 28% of production and 16% of employment. Nationalization contributed to the modernization and financial recovery of these companies, and made it possible to avoid the transfer of some firms under the control of foreign capital. The bloc of right-wing and centrist parties that came to power in 1986 adopted a program of denationalization of 65 of the largest industrial, banking and insurance companies. The largest banking groups “Paribas” and “Société Générale”, the industrial giants “Saint-Gobain”, “Company General d'Electricite”, the financial company “Tivas”, the military-industrial company “Matra”, the financial group “ Syuez ”.
The public sector in France is still an important instrument of economic policy. Renewal of fixed capital, provision of conditions for reproduction in many sectors of the economy is directly decided by the state. The regulatory role of the state finds its vivid expression in state programming and planning, which was widely developed in the early post-war years. For this purpose, official bodies were created, among which the Commissariat of the Plan stands out. The plans developed directed the French economy towards the development of new technologies, restructuring, and strengthening of research and development.
The state is actively involved in the development of R&D. It accounts for over half of the nationwide allocation for research and development. The state seeks to bridge the existing gap in scientific and technical potential between France and other leading countries. Since the second half of the 1980s. in the economic policy of the government, issues related to the creation of a single EU market were put forward as priorities. These include restructuring, taxation and social security systems in line with Community level. The structural features of the economy influence the position of France on integration issues. It usually advocates the regulation of those industries where its competitive position is not high.
The government reduced government regulation of the economy and stimulated the private sector. To this end, exchange controls and price controls were abolished, taxes were reduced, and incentives for companies were increased. Containment of wage growth has been a cornerstone of economic policy, keeping consumer spending at a moderate level, while profit margins have reached the level of the early 1970s.
Industry of France
A significant part of GDP is provided by industrial production - 20%, it provides 24% of jobs, 40% of investments and 80% of exports (2008 data). France has significant reserves of minerals: iron and uranium ores, bauxite, potassium salts, etc. This creates a base for mining and heavy industries. In terms of the level of development of non-ferrous metallurgy, the country occupies leading places in the world rankings, in terms of steel production it is in third place in Western Europe. Main industries: mechanical engineering (2.6% of world production), chemical (fourth in world exports), aerospace (France plays a leading role in the European Space Agency), automotive (third in the world in car production), food (in terms of exports in second place in the world after the United States), electronic, computer science, shipbuilding, electrical engineering.
The production and sale of luxury goods plays a relatively insignificant role in the total volume of the economy, but the production and sale of luxury goods plays an important role for the country's prestige. One of the most advanced countries in the development of nuclear energy: over 75% of energy is obtained at nuclear power plants.
Industrial production growth rates in France,% to the previous year
Under the influence of scientific and technological progress, significant changes are taking place in the sectoral structure of the economy. The importance of industry has declined, which now accounts for 20% of GDP (1980 - 32%). In industrial production, the share of mechanical engineering products increased, mainly due to an increase in the electrical and electronic industries and, in part, in general mechanical engineering. This structural shift was accompanied by a reduction in the share and, in fact, a curtailment of production in traditional industries.
However, in France there is still a rather high proportion of “old” industries, whose products do not withstand competition in the world market from similar products from some Western and especially “newly industrialized countries”. The food industry occupies a large place (12%). Only Great Britain has such a share.
France lags behind the leading countries in terms of the share of mechanical engineering products in industrial production. The greatest lag is noted in the industries that are carriers of scientific and technical progress and ensure the modernization of the production apparatus based on the latest technology. This is, first of all, in the production of machine tools, a number of branches of industrial electronics and informatics, microelectronic technology. Meanwhile, France lags far behind the leading countries in the production of metal-cutting machine tools and press-forging equipment, yielding Germany and Japan in total volume by about 8 times. The production structure of machine tool building is characterized by a relatively low share of progressive types of metalworking equipment.
General machine building and transport machine building take the leading place in the structure of industrial production. The automotive industry is one of the foundations of the national industrial structure. The two largest companies in the country, the private Peugeot-Citroen and the state-owned Renault, account for 4% and 5% of the world's passenger car production, respectively.
French companies rank second in the world, after Japan, in the production of energy equipment for power plants. France remains the leading force in the rocket industry in Western Europe. The Arianspace project secures the country's leading position in commercial satellite launches. It accounts for approximately 50% of the global space market.
The transition to an energy-saving type of production, high dependence on imports of fuel and energy resources caused a reorientation in the energy strategy. The main attention was paid to the development of nuclear energy, as well as alternative energy sources. The accelerated development of nuclear power has led to a noticeable change in the structure of electricity production in the country. In 1973, nuclear power plants generated 8% of all electricity, thermal power plants - 65% and hydroelectric power plants - 27%, and in 1987 the share of nuclear power plants was already 76%, the share of thermal power plants dropped to 7%. The development of nuclear power has made it possible to raise the degree of France's self-sufficiency in energy from 25% in 1975 to 50% in 1980 and 58% in 1987. As new nuclear power plants were put into operation and liquid fuel TPPs were decommissioned, oil imports decreased. ...
Agriculture of France
Agriculture is the most state-sponsored industry, although it is based on private land ownership. The decisive share of production is provided by large farms (with an allotment of 20-100 hectares), but small and medium-sized ones predominate numerically. In terms of production volume, France ranks 1st in Western Europe and 3rd in the world after the USA and Canada. It is the largest European producer of wheat, butter, beef, cheese (over 400 varieties). Livestock raising (cattle breeding) gives more than 50% of the production. The share of wines in export is traditionally high. French farmers are the main opponents of the introduction of genetically modified products in Europe, since French products are traditionally highly valued for their quality.
France is the largest agricultural producer in Western Europe. Agriculture accounted for about 2.2% of GDP and 3.8% of the country's labor force as of 2008, but it provided 25% of the EU's production. A characteristic feature of the socio-economic structure is the rather small size of farms. The average land area is 28 hectares, which exceeds the corresponding figures for many EU countries. Land tenure is highly fragmented. More than half of the farms live on their own land. Large farms are the leading force in production. They provide over 2/3 of production, occupying a dominant position in the production of almost all branches of agriculture.
In agriculture, group forms of farming have become widespread. The most important place among them is occupied by cooperatives, primarily in the use of agricultural machinery. Cooperatives operate in all areas of production. In winemaking they provide 50% of production, 30% of canned vegetables, over 25% of meat trade, over 40% of dairy products. In the mid-1960s. agricultural production associations appeared, which arose as an expression of the desire of small and medium-sized producers to withstand the offensive of big capital.
Agriculture is managed both through the system of state specialized bodies and a number of mixed companies, mainly of a sectoral nature. State regulation is carried out mainly through economic impact. There is a specialized bank "Credit Agricole" with local branches, the Fund for Economic and Social Development. The European Agricultural Orientation Fund has a great influence on the formulation of structural policies. Stimulating methods of state influence are used both to expand the production of individual crops, to strengthen the structure of farms, and to reduce overproduction.
The leading industry is animal husbandry, which accounts for 2/3 of the value of agricultural products, France is the first among Western countries to produce barley and sugar, the second - wheat, wine and meat. Traditionally known industries such as viticulture, horticulture, oyster fishing.
Agriculture is highly industrialized. In terms of saturation with technology, the use of chemical fertilizers, it is second only to the Netherlands, Germany and Denmark. Technical equipment, an increase in the agricultural culture of farms has led to an increase in the level of self-sufficiency of the country in agricultural products. For grain, sugar, it exceeds 200%, for butter, eggs, meat - over 100%.
Foreign economic relations of France
The French economy is deeply embedded in the world economy. French companies in the 1980s managed to slightly increase its share in world exports (6.5%) and reduce imports. Foreign trade is a serious factor in economic growth. About 1/5 of its final product is exported. In 2010, the volume of exports amounted to $ 508.7 billion, and the volume of imports - $ 577.7 billion.
The structure of French exports has certain peculiarities. In it, agricultural products and raw materials have a higher specific weight. Currently, machinery and equipment occupy liquidating positions in the country's foreign trade. The largest share in this group of world trade is occupied by civil aircraft, electrical equipment and complete equipment for the construction of large industrial facilities, various types of weapons.
In the 1980s. France's position in trade in many types of engineering products has weakened noticeably. In addition, over the past 20 years, the share in world exports of cars, office equipment and computers, special industrial equipment, machine tools, and electrical appliances has decreased. This is largely determined by the specifics of the sectoral structure of the economy and the nature of its specialization in the international division of labor, as well as a decrease in the competitiveness of industry. At the same time, it ranks second in the export of aviation equipment, locomotives, wagons; cars, chemical goods - third place; in the export of military equipment and weapons, France holds the second place in the world after the United States. The top three arms exports are warships, aircraft and military weapons.
In terms of agricultural exports, France lags behind only the United States. More than 1/3 of the manufactured products are sold in foreign markets. Agricultural exports are dominated by "bulk" products - wheat, barley, corn, dairy products. The share of highly processed products - confectionery, meat products, chocolate, canned food - is lower than in other leading countries. Export specialization of France is significantly inferior to other large countries. So, in general mechanical engineering, only one production belongs to a high level of specialization (jet engines) and a number - to a moderate one (pumps, steam engines, nuclear reactors, rotary power plants, refrigerators, heating equipment, agricultural machinery).
In the last two decades, the import component in the French economy has significantly increased (up to more than 20% of GDP), which is associated with the strengthening of the international division of labor and changes in the competitiveness of French goods. The highest share of imports is in the production of mechanical engineering and chemical products (40-60%). This is largely due to the peculiarities of the development of the country's scientific and technical potential and the introduction of scientific achievements into production.
Many French companies treat the EU market as their own. Over 60% of exports go to EU countries. This is the largest share among the top four Western European countries. The main trade partner of France in this region according to data for 2008 is Germany, which accounts for 15% of exports and 19% of imports. In second place is Spain (9% of exports and 7% of imports), followed by Italy (8% of exports and 8% of imports), Belgium (7% of exports and 11% of imports) and the Netherlands (4% of exports and 7% of imports). Among other countries, the United States is an important trading partner (6% of exports and 4% of imports). The share of developing countries in the country's trade declined. The disadvantage of the geographic structure of foreign trade is the significant orientation of exports to countries with slowly expanding markets.
French companies are making great efforts to expand foreign economic expansion. The export of capital is an important means of it. France accounts for 5% of total foreign direct investment. Moreover, in the 1980s. there was a reduction in its share.
Capital export has noticeably reoriented towards industrialized countries, where Western Europe is the main object of capital investment, but its importance has diminished. In 1960, Western European countries accounted for 86.4% of French direct investment, and in 1986 their share dropped to 57%. During the same period, the share of the United States increased sharply - from 5.4% to 36.5%. In the 1980s. French companies ranked sixth among foreign investors in the United States. Basically, their investments are concentrated there in old industries - metallurgy, coal, chemical, oil and automobile tire industries. In Western Europe, the bulk of French capital is invested in Germany and Great Britain.
Developing countries account for about 30% of total direct investment, which is higher than the share of other countries. The African continent previously occupied and continues to occupy a special place. It accounts for over 50% of French investments in the Third World. They are mainly concentrated in the countries of the franc zone. In addition to the primary industries, investments are made in manufacturing through the establishment of assembly or autonomous enterprises with a focus on the local market.
France is also a major capital importer. The leading place among foreign firms is occupied by American ones (48%). The investments of each individual European country are significantly inferior to them.
A large inflow of foreign capital began in the 1960s. Foreign firms account for more than 1/4 of the total turnover and about 1/3 of merchandise exports.
The structural features of the economy influence the position of France on integration issues. It usually advocates the regulation of those industries where its competitive position is not high.
In the 1990-2000s. the government reduced government regulation of the economy and stimulated the private sector. To this end, exchange controls and price controls were abolished, taxes were reduced, and incentives for companies were increased. Containment of wage growth has been a cornerstone of economic policy, keeping consumer spending at a moderate level, while profit margins have reached the level of the early 1970s.
Main macroeconomic indicators of France
French statistical office Insee reported that France's GDP in 2010 grew by 1.5% after falling by 2.7% in 2009. The country's budget deficit last year amounted to 136.5 billion euros, or 7.1% of GDP. In turn, the national debt of the country in the period under review increased to 82.3% of GDP against 81.7% of GDP in 2009. The country's GDP for the first quarter of 2011 grew by 0.9% compared with growth of 0.3% in the fourth quarter of 2010. At the same time, the growth of real consumer spending in January-March of this year accelerated to 0.6% against 0.4%, the rate of increase in export volumes increased to 1.4% after increasing by 0.3% in the fourth quarter of 2010, and the volume of imports rose 2.7% after falling 0.7% a quarter earlier.
The French economy in the II quarter of 2011 did not change compared to the previous three months. Zero GDP growth, according to experts, could force President Nicolas Sarkozy to make significant cuts in budget spending and refuse to abolish taxes. The decline in household consumption in the II quarter of 2011 by 0.7% was the main reason for the lack of GDP growth.
Industrial production in France fell 1.6% month-on-month in June 2011, statistics agency Insee reported. In annual terms, the indicator increased by 2.3%. Experts interviewed by Bloomberg predicted that in June the figure would fall by 0.7%. In May, industrial production in France increased by 1.9%.
Today France is experiencing serious structural problems, - according to the latest research "Index of default" by the Center for European Policy in Freiburg (Germany) and the German business newspaper Handelsblatt. The greatest concern is caused by the Italian economy, economists say: from 2011 to the end of 2010, the default indicator fell from 6.2 points to -0.6 points.
If in 2001-2003 France was a net exporter of capital and invested in foreign assets, then since 2004 the situation has changed: the country has become a net importer of capital and from that moment began to increase its debt. In 2010, the capital requirement of the French economy was already at the level of 3.8% of GDP with a budget deficit of 74 billion euros. Investments averaged 4% of GDP until 2005 and reached 5% by 2008, but from that moment they began to fall - to 3.2% in 2010.
Countries "importing capital" should channel it as much as possible on investments that increase production capacity, notes Handelsblatt: only such investments in the future bring income, with the help of which external debt can be repaid. France's default index, with the exception of stagnation in 2006 and 2007, has steadily declined, and in 2010 fell below zero for the first time. This means that consumption expenditures exceeded income in the domestic market, the study said. This gap is estimated in 2010 at least 0.6% of GDP - 12 billion euros.
The negative dynamics of the index suggests a decrease in France's creditworthiness compared to previous levels, experts fear. “Without fundamental real economic reforms, France is in danger of losing credit in the medium term,” says the Center for European Policy. In addition, French banks are one of the main holders of Greek debt securities: according to the Bank for International Settlements, by the end of 2010 Greece's debt to them reached $ 53 billion, including $ 15 billion in government bonds. France thus found itself for the first time in the same risk category as Italy and Spain.
Europe and the world. She plays an important role in world politics, being a permanent member of the UN Security Council, the G7 and many international organizations, and since 2009 again NATO. Close cooperation and cooperation with the EU and Germany in particular have ensured high rates of GDP growth in France in recent decades.
Short review
The French economy is well diversified across all sectors. The government has privatized, in part or in whole, most of the large companies, including Air Telecom, Renault, and Thales. However, the role of the state remains significant in the energy sector, public transport and the military-industrial complex. Despite terrorist attacks, workers' strikes and bad weather, France remains the most tourist-attractive country in the world. In 2016, 83 million foreigners visited it, and 530 thousand of them came to Euro 2016.
The current situation
The French President's policy is aimed at increasing the competitiveness of the national industry and reducing unemployment. An additional $ 50 billion is expected to be allocated for these tasks. The results of the implementation of the program are not yet visible. France's 2017 budget also includes income tax cuts for households and small and medium-sized businesses. François Hollande has already implemented two highly unpopular economic reforms, which have led to widespread protests.
Macron's Law allowed businesses to work on certain Sundays of the month and set wages much more freely. The El Homri Law also targeted this area, prompting strong protests from trade unions.
Gdp
France is the third largest economy in the European Union. On the first and second are countries such as Germany and Great Britain, respectively. The latter is in the process of leaving the European Union, but is still an official member of this association. France's GDP in purchasing power parity is, as of 2016, 2.699 trillion US dollars. According to this indicator, the country is in eleventh place in the world. GDP at the official exchange rate. - 2.448 trillion US dollars. 7.7% of the population is below the poverty line.
The service sector plays a key role in the structure of France's GDP. It gives 79.8% of GDP. The key sector is tourism. The high share of the service sector in France's GDP is largely due to just this industry. Industry accounts for 18.3%. The key sectors are mechanical engineering, chemical industry and metallurgy. Agriculture accounts for 1.9% of GDP. The economically active population, as of 2017, is 30 million people. Of these, 71.8% are employed in the service sector, 24.3% in industry, and 3.8% in agriculture. The average salary is 34,800 euros, after taxes - 26,400. The state is in 29th place in the ranking of ease of doing business.
GDP per capita in France
In the late 2000s, most countries in the world were hit by a recession. However, France was able to quickly stop the decline in economic indicators. Per capita, as of 2016, there are 42,400 US dollars. This is 330% of the world average. This is France's record high per capita GDP from 1960 to 2016. Experts predict that this figure will increase even more in 2018.
Economic growth
In the first quarter of 2017, France's GDP increased by 1%. This is 0.2% less than in the past, but more than predicted. Between 1950 and 2017, France's average annual GDP growth was 3.19%. The largest increase in the indicator was recorded in the second quarter of 1969. Then the growth of French GDP was 12.5%. As for the all-time low, that figure fell on the recent recession. In the first quarter of 2009, France's GDP decreased by 3.8%.
External sector
In 2016, France's exports to various countries around the world amounted to USD 505.4 billion. This is less than the previous one. Exported goods include machinery and equipment, aircraft, plastics, chemicals, pharmaceuticals, cast iron and steel, and beverages. Germany is in the first place among the main export partners of France. It accounts for 16.7% of the total.
Other export partners include Belgium, Italy, Spain, UK, USA and the Netherlands. France's imports in 2016 amounted to USD 525.4 billion. This indicator also decreased compared to the previous year.
The trade balance is negative at USD 20 billion. Goods imported from abroad are machinery and equipment, vehicles, crude oil, aircraft, plastics, and chemicals. Germany is again the key import partner of the state under consideration. It accounts for 19.5% of the total value.
Other import partners include Belgium, Italy, Netherlands, Spain, UK and China. One of the key points of the new is the diversification of the sales market, so experts expect the expansion of cooperation of the state in question with Asia. The volume of foreign direct investment in December 2016 amounted to $ 1.1 trillion. This is more than a year earlier. The total external debt is $ 5.6 trillion. Unfortunately, this figure also increased in 2016.
France remains one of the fastest growing countries in the world. But whether the reforms planned by the government and the president will show the result remains questionable.
During 1970-2016. France's GDP in current prices increased by $ 2,316.5 billion (16.6 times) to $ 2,465.5 billion; the change occurred by $ 42.7 billion due to population growth by 14.9 million, as well as by $ 2,273.8 billion due to GDP per capita growth of $ 33,964.0. The average annual GDP growth in France was at the level of $ 50.4 billion, or 6.3%. France's GDP grew at an average annual rate of 2.2% in constant prices. The share in the world decreased by 1.1%. The share in Europe increased by 2.2%. The minimum of GDP was in 1970 ($ 148.9 billion). The maximum GDP was in 2008 ($ 2,923.6 billion).
For 1970-2016 GDP per capita in France increased by $ 33,964.0 (12.9 times) to $ 36,826.0. The average annual growth of GDP per capita in current prices was at the level of $ 738.3 or 5.7%.
The change in French GDP is described by a linear correlation-regression model: y = 62.3x-122 769.6, where y is the calculated value of French GDP, x is a year. Correlation coefficient = 0.966. Determination coefficient = 0.933.
French GDP, 1970-2008 (growth)
During 1970-2008. France's GDP in current prices increased by $ 2,774.6 billion (19.6 times) to $ 2,923.6 billion; the change occurred by $ 35.4 billion due to an increase in the population of $ 12.4 million, as well as by $ 2,739.2 billion due to an increase in GDP per capita of $ 42,529.0. The average annual GDP growth in France was at the level of $ 73.0 billion, or 8.1%. The average annual GDP growth in France at constant prices is 2.5%. The share in the world increased by 0.22%. The share in Europe increased by 2.4%.
During 1970-2008. GDP per capita in France increased by $ 42,529.0 (15.9 times) to $ 45,391.0. The average annual growth of GDP per capita in current prices was at the level of $ 1,119.2 or 7.5%.
France GDP, 2008-2016 (decline)
For the period 2008-2016 France's GDP in current prices decreased by $ 458.1 billion (by 15.7%) to $ 2,465.5 billion; the change occurred by $ 115.3 billion due to an increase in the population of $ 2.5 million, as well as by $ -573.4 billion due to a drop in GDP per capita by $ 8,565.0. The average annual GDP growth in France is -57.3 billion dollars, or -2.1%. France's GDP grew at an average annual rate of 0.62% at constant prices. The share in the world decreased by 1.3%. The share in Europe decreased by 0.22%.
During 2008-2016. GDP per capita in France increased by $ 8,565.0 (18.9%) to $ 36,826.0. The average annual growth of GDP per capita in current prices amounted to -1,070.6 dollars or -2.6%.
GDP of France, 1970
France GDP in 1970 it was equal to 148.9 billion dollars, ranked 5th in the world. The share of France's GDP in the world was 4.4%.
In 1970 it was equal to $ 2,862.0, ranked 21st in the world and was at the level of GDP per capita in Aruba ($ 2,991.0), GDP per capita in the Netherlands ($ 2,898.0), GDP per capita in Belgium (2 788.0 dollars), GDP per capita in Germany (2 737.0 dollars). GDP per capita in France was more than GDP per capita in the world (920.0 dollars) by 1,942.0 dollars.
Comparison of the GDP of France and its neighbors in 1970. France's GDP was more than that of Great Britain ($ 130.7 billion) by 14%, Italian GDP ($ 113.0 billion) by 31.8%, Spain's GDP ($ 40.9 billion) by 3.6 times, Belgium's GDP ($ 26.8 billion). USD) 5.5 times, Swiss GDP (24.3 billion USD) 6.1 times, but was less than the GDP of Germany (215.0 billion USD) by 30.7%. GDP per capita in France was more than GDP per capita in Belgium ($ 2,788.0) by 2.7%, GDP per capita in Germany ($ 2,737.0) by 4.6%, GDP per capita in Great Britain ($ 2,349.0) ) by 21.8%, GDP per capita in Italy (2 110.0 dollars) by 35.6%, GDP per capita in Spain (1 203.0 dollars) 2.4 times, but was less than GDP per capita in Switzerland (3 935.0 dollars ) by 27.3%.
Comparison of French GDP and leaders in 1970. France's GDP was less than that of the United States ($ 1,075.9 billion) by 86.2%, USSR GDP ($ 433.4 billion) by 65.6%, German GDP ($ 215.0 billion) by 30.7%, Japan's GDP (211.5 billion dollars) by 29.6%. GDP per capita in France was higher than GDP per capita in Germany ($ 2,737.0) by 4.6%, GDP per capita in Japan ($ 2,016.0) by 42%, GDP per capita in the USSR ($ 1,788.0 ) by 60.1%, but was less than the GDP per capita in the USA (5,133.0 dollars) by 44.2%.
Potential GDP of France in 1970. With GDP per capita at the same level as GDP per capita in the United States ($ 5,133.0), France's GDP would be $ 267.1 billion, which is 79.4% more than the actual level. With GDP per capita at the same level as GDP per capita in Switzerland ($ 3,935.0), the best neighbor, France's GDP would be $ 204.8 billion, which is 37.5% higher than the actual level.
France GDP, 2008
France GDP in 2008 it was equal to $ 2,923.6 billion, ranked 5th in the world and was at the level of Great Britain's GDP ($ 2,890.7 billion). The share of France's GDP in the world was 4.6%.
GDP per capita in France in 2008 amounted to 45 391.0 dollars, ranked 26th in the world and was at the level of GDP per capita in the United States (48 516.0 dollars), GDP per capita in Belgium (48 115.0 dollars), GDP per capita in Andorra (47 786.9 dollars), GDP per capita in the UK ($ 46,568.0), GDP per capita in Canada ($ 46,373.0), GDP per capita in the UAE ($ 46,357.0), GDP per capita in Germany ($ 46,252.0) ... GDP per capita in France was more than GDP per capita in the world (9,376.0 dollars) by 36,015.0 dollars.
Comparison of GDP of France and its neighbors in 2008. France's GDP was higher than that of Great Britain ($ 2,890.7 billion) by 1.1%, Italian GDP ($ 2,390.8 billion) by 22.3%, Spain's GDP ($ 1,635.1 billion) by 78.8%, Swiss GDP (554.4 billion dollars) by 5.3 times, the GDP of Belgium (518.6 billion dollars) by 5.6 times, but was less than the GDP of Germany (3,752.5 billion dollars) by 22.1%. GDP per capita in France was more than GDP per capita in Italy ($ 40,180.0) by 13%, GDP per capita in Spain ($ 35,547.0) by 27.7%, but was less than GDP per capita in Switzerland (72,503.0 dollars) by 37.4%, GDP per capita in Belgium (48,115.0 dollars) by 5.7%, GDP per capita in the UK (46,568.0 dollars) by 2.5%, GDP per capita in Germany (46,252.0 dollars) ) by 1.9%.
Comparison of GDP of France and leaders in 2008. France's GDP was less than the US GDP ($ 14,718.6 billion) by 80.1%, Japan's GDP ($ 5,037.9 billion) by 42%, China's GDP ($ 4,604.3 billion) by 36.5%, German GDP (3,752.5 billion dollars) by 22.1%. GDP per capita in France was 15.8% higher than GDP per capita in Japan ($ 39,190.0), GDP per capita in China ($ 3,425.0) was 13.3 times, but was less than GDP per capita in USA (48 516.0 dollars) by 6.4%, GDP per capita in Germany (46 252.0 dollars) by 1.9%.
Potential GDP of France in 2008. With GDP per capita at the same level as GDP per capita in Switzerland ($ 72,503.0), the best neighbor, France's GDP would be $ 4,669.8 billion, 59.7% more than the actual level. With GDP per capita at the same level as GDP per capita in the United States ($ 48,516.0), France's GDP would be $ 3,124.9 billion, which is 6.9% more than the actual level. With GDP per capita at the same level as GDP per capita in Western Europe ($ 48,481.0), France's GDP would be $ 3,122.6 billion, which is 6.8% more than the actual level.
France GDP, 2016
France GDP in 2016 it was equal to 2,465.5 billion dollars, ranked 6th in the world. The share of France's GDP in the world was 3.3%.
GDP per capita in France in 2016 was 36,826.0 dollars, ranked 32nd in the world and was at the level of GDP per capita in Israel (38,788.0 dollars), GDP per capita in Japan (38,640.0 dollars), GDP per capita in the UAE (37,622.0 dollars), GDP per capita in Andorra (36 987.2 dollars), GDP per capita in New Caledonia (34 641.1 dollars). GDP per capita in France was more than GDP per capita in the world ($ 10,134.0) at $ 26,692.0.
Comparison of GDP of France and its neighbors in 2016. France's GDP was more than that of Italy ($ 1,858.9 billion) by 32.6%, Spain's GDP ($ 1,237.3 billion) by 99.3%, Switzerland's GDP ($ 668.9 billion) by 3.7 times, Belgium's GDP ( 468.0 billion dollars) by 5.3 times, but was less than the GDP of Germany GDP of Great Britain (2 647.9 billion dollars) by 6.9%. GDP per capita in France was higher than GDP per capita in Italy ($ 31,279.0) by 17.7%, GDP per capita in Spain ($ 26,695.0) by 38%, but was less than GDP per capita in Switzerland ($ 79,609.0) by 53.7%, GDP per capita in Germany ($ 42,456.0) by 13.3%, Belgium's GDP per capita ($ 41,199.0) by 10.6%, UK GDP per capita ($ 40,249.0) ) by 8.5%.
Comparison of France's GDP and leaders in 2016. France's GDP was less than that of the United States ($ 18,624.5 billion) by 86.8%, China's GDP ($ 11,218.3 billion) by 78%, Japan's GDP ($ 4,936.2 billion) by 50.1%, German GDP ($ 3,477.8 billion) by 29.1%, UK GDP ($ 2,647.9 billion) by 6.9%. GDP per capita in France was 4.6 times higher than GDP per capita in China ($ 7,993.0), but less than GDP per capita in the United States ($ 57,808.0) by 36.3%, GDP per capita in Germany (42 456.0 dollars) by 13.3%, GDP per capita in the UK (40 249.0 dollars) by 8.5%, GDP per capita in Japan (38 640.0 dollars) by 4.7%.
Potential GDP of France in 2016. With GDP per capita at the same level as GDP per capita in Switzerland ($ 79,609.0), the best neighbor, France's GDP would be $ 5,329.7 billion, 2.2 times the actual level. With GDP per capita at the same level as GDP per capita in the United States ($ 57,808.0), France's GDP would be $ 3,870.2 billion, 57% more than the actual level. With GDP per capita at the same level as GDP per capita in Western Europe ($ 42,669.0), France's GDP would be $ 2,856.6 billion, which is 15.9% more than the actual level.
| year | GDP, billions of dollars | GDP per capita, dollars | GDP, billions of dollars | GDP growth,% | share of France,% | ||
|---|---|---|---|---|---|---|---|
| current prices | constant prices 1970 | in the world | in Europe | in Western Europe | |||
| 1970 | 148.9 | 2 862.0 | 148.9 | 4.4 | 10.8 | 31.7 | |
| 1971 | 166.6 | 3 174.0 | 156.9 | 5.3 | 4.4 | 10.9 | 30.9 |
| 1972 | 204.3 | 3 857.0 | 164.0 | 4.5 | 4.7 | 11.4 | 31.2 |
| 1973 | 265.4 | 4 966.0 | 174.4 | 6.3 | 5.1 | 11.9 | 30.8 |
| 1974 | 286.5 | 5 318.0 | 181.9 | 4.3 | 4.8 | 11.8 | 29.7 |
| 1975 | 362.0 | 6 673.0 | 180.1 | -0.98 | 5.5 | 12.9 | 32.2 |
| 1976 | 373.4 | 6 846.0 | 187.9 | 4.3 | 5.2 | 12.9 | 31.5 |
| 1977 | 411.5 | 7 513.0 | 194.3 | 3.5 | 5.1 | 12.7 | 30.5 |
| 1978 | 508.2 | 9 246.0 | 202.1 | 4.0 | 5.3 | 13.1 | 30.4 |
| 1979 | 615.9 | 11 168.0 | 209.3 | 3.6 | 5.6 | 13.4 | 31.1 |
| 1980 | 703.5 | 12 709.0 | 212.6 | 1.6 | 5.7 | 13.8 | 32.3 |
| 1981 | 617.6 | 11 107.0 | 214.9 | 1.1 | 4.9 | 13.4 | 33.0 |
| 1982 | 586.8 | 10 502.0 | 220.3 | 2.5 | 4.7 | 12.8 | 32.6 |
| 1983 | 561.9 | 10 002.0 | 223.0 | 1.3 | 4.4 | 12.4 | 31.9 |
| 1984 | 532.7 | 9 430.0 | 226.4 | 1.5 | 4.1 | 12.3 | 32.1 |
| 1985 | 555.2 | 9 773.0 | 230.1 | 1.6 | 4.1 | 12.6 | 32.7 |
| 1986 | 774.6 | 13 554.0 | 235.5 | 2.4 | 5.0 | 13.9 | 32.3 |
| 1987 | 938.3 | 16 319.0 | 241.6 | 2.6 | 5.3 | 14.3 | 31.8 |
| 1988 | 1 023.5 | 17 691.0 | 253.0 | 4.7 | 5.2 | 14.2 | 32.0 |
| 1989 | 1 030.1 | 17 699.0 | 264.0 | 4.4 | 5.0 | 14.1 | 32.3 |
| 1990 | 1 275.3 | 21 789.0 | 271.7 | 2.9 | 5.5 | 14.6 | 31.9 |
| 1991 | 1 275.5 | 21 681.0 | 274.6 | 1.0 | 5.3 | 14.2 | 30.9 |
| 1992 | 1 408.7 | 23 828.0 | 279.0 | 1.6 | 5.5 | 14.7 | 30.5 |
| 1993 | 1 330.2 | 22 396.0 | 277.2 | -0.61 | 5.1 | 15.2 | 29.9 |
| 1994 | 1 401.6 | 23 491.0 | 283.7 | 2.3 | 5.0 | 15.2 | 29.5 |
| 1995 | 1 609.8 | 26 853.0 | 289.7 | 2.1 | 5.2 | 15.2 | 29.0 |
| 1996 | 1 614.3 | 26 800.0 | 293.7 | 1.4 | 5.1 | 14.9 | 29.7 |
| 1997 | 1 460.7 | 24 132.0 | 300.5 | 2.3 | 4.6 | 14.3 | 30.0 |
| 1998 | 1 510.8 | 24 835.0 | 311.2 | 3.6 | 4.8 | 14.5 | 30.3 |
| 1999 | 1 500.2 | 24 535.0 | 321.8 | 3.4 | 4.6 | 14.5 | 30.4 |
| 2000 | 1 368.4 | 22 262.0 | 334.3 | 3.9 | 4.1 | 14.1 | 30.7 |
| 2001 | 1 382.2 | 22 364.0 | 340.8 | 2.0 | 4.1 | 14.0 | 30.7 |
| 2002 | 1 500.4 | 24 142.0 | 344.7 | 1.1 | 4.3 | 13.9 | 30.9 |
| 2003 | 1 848.1 | 29 567.0 | 347.5 | 0.82 | 4.7 | 14.1 | 31.3 |
| 2004 | 2 124.2 | 33 787.0 | 357.2 | 2.8 | 4.8 | 14.0 | 31.7 |
| 2005 | 2 203.6 | 34 843.0 | 362.9 | 1.6 | 4.6 | 13.7 | 31.9 |
| 2006 | 2 324.9 | 36 539.0 | 371.5 | 2.4 | 4.5 | 13.4 | 31.9 |
| 2007 | 2 663.0 | 41 597.0 | 380.3 | 2.4 | 4.6 | 13.1 | 31.9 |
| 2008 | 2 923.6 | 45 391.0 | 381.0 | 0.20 | 4.6 | 13.2 | 31.8 |
| 2009 | 2 693.7 | 41 577.0 | 369.8 | -2.9 | 4.5 | 13.8 | 31.9 |
| 2010 | 2 646.8 | 40 629.0 | 377.1 | 2.0 | 4.0 | 13.4 | 31.4 |
| 2011 | 2 862.7 | 43 718.0 | 384.9 | 2.1 | 3.9 | 13.1 | 31.0 |
| 2012 | 2 681.4 | 40 754.0 | 385.6 | 0.18 | 3.6 | 12.8 | 30.8 |
| 2013 | 2 808.5 | 42 494.0 | 387.9 | 0.58 | 3.6 | 12.9 | 30.7 |
| 2014 | 2 849.3 | 42 924.0 | 391.5 | 0.95 | 3.6 | 12.8 | 30.4 |
| 2015 | 2 433.6 | 36 504.0 | 395.7 | 1.1 | 3.3 | 12.8 | 29.8 |
| 2016 | 2 465.5 | 36 826.0 | 400.4 | 1.2 | 3.3 | 13.0 | 29.6 |
Picture. GDP of France, 1970-2016
Picture. GDP per capita in France, 1970-2016
Picture. GDP growth in France, 1970-2016
France GDP by Expenditure
| Index | 1970 | 1980 | 1990 | 2000 | 2010 | 2016 | |
|---|---|---|---|---|---|---|---|
| Consumer spending | 71.4 | 75.9 | 76.5 | 76.5 | 80.0 | 78.9 | |
| incl. | Household spending | 54.6 | 55.0 | 55.6 | 54.4 | 56.1 | 55.3 |
| Government spending | 16.9 | 20.9 | 21.0 | 22.1 | 23.8 | 23.6 | |
| Private investment | 28.1 | 25.7 | 24.3 | 22.4 | 21.9 | 23.0 | |
| Net export | 0.46 | -1.5 | -0.80 | 1.1 | -1.9 | -1.9 | |
| Gdp | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
Comparison of GDP of France and neighboring countries
| Country | 1970 | 1980 | 1990 | 2000 | 2010 | 2016 |
|---|---|---|---|---|---|---|
| Germany | 0.16 | 0.13 | 0.14 | 0.15 | 0.11 | 0.15 |
Economic growth in France
France is currently in the midst of a transition from a wealthy modern economy that has a large share of state ownership and intervention to one that relies more on market mechanisms. The government has privatized, in part or in whole, many large industrial and insurance companies and banks, and has ceded stakes in such leading companies as Air France, France Telecom, Renault, and Thales. However, the state retains a significant presence in some sectors, especially in the energy, public transport and defense industries. France is the most visited country in the world (over 75 million tourists annually) and maintains the third largest tourism income in the world.
France's leaders remain committed to capitalism, in which they support the social sphere through laws, tax policies and social spending that reduce income inequality and the impact of free markets on health and welfare. France weathered the global economic crisis better than most other large EU economies due to the relative resilience of domestic consumer spending, a large public sector, and less reliance on falling export demand than some other countries.
A traditional feature of French economic policy is a large share of the public sector, especially in strategically important areas - the oil and gas industry, transport. There is planning, but it is not normative, but indicative (the targets are not normative for private enterprises). The share of foreign capital in the economy is large (industry up to 40%, real estate about 27.5%, trade - 20%, services - 9%). More than 20% of workers work at enterprises with foreign capital. The share of foreign capital in computer science and other branches of advanced technology is especially large (over 50%). France's GDP growth rates are shown in Figure 1 and Table 1.
Figure 1- French GDP Growth Rates 1
Table 1 - GDP growth rates in France and% 2
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According to the French statistical office, Insee reports that France's GDP has been observed since 2010. At the end of 2010, it grew by 1.7% after falling by 2.6% in 2009. The country's budget deficit last year amounted to 136.5 billion euros, or 7.1% of GDP. In turn, the national debt of the country in the period under review increased to 82.3% of GDP against 81.7% of GDP in 2009. The country's GDP for the first quarter of 2015 grew by 0.9% compared to growth of 0.3% in the fourth quarter of 2014. At the same time, the growth of real consumer spending in January-March of this year accelerated to 0.6% against 0.4%, the rate of increase in export volumes increased to 1.4% after increasing by 0.3% in the fourth quarter of 2014, and the volume of imports rose 2.7% after falling 0.7% a quarter earlier.
Industrial production in France fell 1.6% month-on-month in May 2014, statistics agency Insee reported. In annual terms, the indicator increased by 2.3%. Experts interviewed by Bloomberg predicted that in June the figure would fall by 0.7%. In May 2015. industrial production in France increased by 1.9%.
Countries "importing capital" should channel it as much as possible on investments that increase production capacity, notes Handelsblatt: only such investments in the future bring income, with the help of which external debt can be repaid. France's default index, with the exception of stagnation in 2006 and 2007, has steadily declined, and in 2010 fell below zero for the first time. This means that consumption expenditures exceeded income in the domestic market, the study said. This gap is estimated in 2010 at least 0.6% of GDP - 12 billion euros.
The French economy has grown at the fastest pace in the past two years, expanding 0.6 percent in the first quarter of 2015, reports The Financial Times 3 ... This is two times better than analysts' expectations. France stagnated in the fourth quarter of 2014.
By comparison, the other two largest EU economies, the UK and Germany, showed a slowdown in growth compared to the previous quarter. In both countries, GDP increased by only 0.3 percent (the growth of the German economy in the fourth quarter was 0.7 percent).
The economic recovery in France was mainly driven by growth in consumer spending, which amounted to 0.8 percent. At the same time, a decrease in investments was recorded for seven months in a row.
As the newspaper notes, these figures clearly show the benefit of France from the weak euro, as well as the relatively low energy prices, which were held in the past three months.
At the same time, no significant success has been achieved in the fight against unemployment. It continues to remain above 10 percent, close to multi-year highs.
The growth of the French economy by the end of this year will accelerate, the budget deficit will be reduced. Such data are provided in the spring economic the forecast of the European Commission.
“French economic growth is expected to accelerate throughout 2015 and 2016, mainly driven by consumer spending. Inflation is expected to reach zero in 2015 due to the fall in oil prices. The positive impact of the depreciation of the euro on net exports is likely to be limited. The state budget deficit in 2014 reached 4% of GDP and is expected to continue to decline in 2015 against the backdrop of accelerating growth rates, ”the EC forecast says. 4
.
The budget deficit in 2016 is projected at 3.5% of GDP.
Literature
- Zueva K. French "Euro-Atlantic project" / K. Zuev // World economy and international relations. - 2014. - No. 9.-p.32-39
- Kudrov V.M. World Economy: Socio-Economic Models of Development. Study guide / V.M. Kudrov. - M: Magister, 2014 .-- 399 p.
- Lomakin V.K. World economy. - M .: UNITI. - 2013 .-- 727 p.
- French GDP growth rate. - Access code:http://www.ereport.ru/stat.php?razdel=country&count=france&table=ggecia
- France's GDP growth peaked in five quarters. -http://www.vestifinance.ru/articles/51237
- Growth of the European economy. http://www.bbc.com/russian/business/2014/08/140814_eu_economics_decline
1 GDP growth rates in France. - Access code: http://www.ereport.ru/stat.php?razdel=country&count=france&table=ggecia
2 Ibid.
3 France's GDP growth peaked in five quarters. - http://www.vestifinance.ru/articles/51237
4 Growth of the European economy. - http://www.bbc.com/russian/business/2014/08/140814_eu_economics_decline
Territory of France
The largest state in Western Europe with a total area of 545 thousand square meters. km. Owns possessions in the Caribbean:
Martinique and Guadeloupe, as well as Reunion Island (east of Madagascar). The area, taking into account these territories, is 640.05 thousand square meters. km. The western and northern regions of France are plains, in the center and in the east there are medium low-rise mountains, in the southeast - the Alps, in the southwest - the Pyrenees.
Population of France
The population without overseas departments is 62 million people (2008), with dependent territories - 64.05 million people. France is characterized by a high birth rate and high life expectancy. According to IN SEE experts, according to these indicators, France may become a leader among other countries of the European Union. The average life expectancy is 80.98 years (men - 77.79 years, women - 84.33 years) (in 2009). France is a country of mass immigration, with a particularly large number of emigrants from the former French colonies in Africa. The French make up about 90% of the total population, but the outlying areas are inhabited by ethnic groups that differ in language and culture (in particular, the Bretons - 1.5 million people). The predominant religion is Catholicism (84% of the population).
State structure of France
Presidential republic, head of state and executive branch - president, elected for a term of five years. In consultation with parliament, he appoints the prime minister and members of the government. Parliament consists of two chambers: the National Assembly and the Senate.
Administrative divisions of France
22 regions and 96 administrative units. The capital is Paris. Other major cities: Marseille, Lyon, Strasbourg, Toulon.
GDP volume, economic growth rates and other statistical indicators
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France is a member of many international economic organizations: the UN (since 1945), the IMF and the World Bank (since 1947), NATO (1949-1966), the OECD (since 1961), the EU (since 1957. ), "Big Seven" (since 1975), EBRD (since 1990), WTO (since 1995).
Fiscal sector in France
More than half of the national income is redistributed through the budget (in 1913 - 20%). Tax levies account for over 44% of the country's GDP. According to this indicator, the country occupies one of the leading places in the EU (along with Sweden). The tax burden has increased in the 90s and is higher than the EU average. The standard VAT rate is 19.6%. The standard corporate tax rate is 33.3%, but there are incentives for small businesses. Income tax is very high, especially at the top rates. In 2008, the top rate was cut from 60% to 50%.
The French economy is characterized by the following features:
- state budget deficit;
- high government debt;
- deficit of the foreign trade balance;
- the French labor market is inflexible and the unemployment rate is one of the highest compared to other EU member states;
- the level of taxation of French companies and social security contributions is considered one of the highest in Europe;
- highly developed banking sector;
- an effective mechanism for distributing financial flows and, as a result, a small scale of the shadow economy;
- high level of strikes.
There is a package of measures on the agenda of the government and legislators, covering socio-economic, legal, political and international issues.
The core of the planned reforms will be a set of financial and tax measures aimed at the implementation of the main slogan of N. Sarkozy's program: "Work more - get more." The following measures should "rehabilitate the job" and improve the purchasing power of the French:
- Exemption from taxation of overtime work (according to statistics, 37% of employees in France work overtime).
- Deduction from the tax base of the amounts paid on loans taken for the purchase of housing.
- Reduction or complete cancellation (in case of inheritance transfer within the family) inheritance tax.
- Reducing the tax on large fortunes in the case of investing in small businesses.
- Abolition of taxes for working students.
- Expansion of earning opportunities for working pensioners.
- Restricting the practice of so-called golden parachutes - "financial gifts" to leading managers of large companies upon retirement.
- Abolition of the practice of advance payment of taxes on enterprises.
One of the most difficult reforms planned by the government in the near future promises to be the adoption of a law on the so-called minimum services in the public sector in the event of a strike. We are talking mainly about public transport workers (metro, buses, suburban trains), whose strikes have more than once led to a complete disruption of the transport system of large cities, creating extreme inconvenience to their residents. It is assumed that under the new law, the strikers will be required to provide transport services at a minimum level, to warn the authorities about the start of the strike two days before it starts, and also to hold a secret ballot to continue the strike eight days after it started.
But, according to experts, the tasks of achieving "new economic growth" as well as reducing public debt to less than 60% of GDP, reaching a deficit-free budget by 2012 and observing the EU's "stability pact" may turn out to be difficult to achieve.
Foreign economic relations of France
Countries importing products from France: Germany - 14.9%, Spain - 9.3%, Italy - 8.9%, Great Britain - 8.1% (2007).
Countries exporting products to France: Germany - 18.9%, Belgium - 11.4%, Italy - 8.4%, Spain - 7.1% (2007).
The volume of exports in 2008 amounted to 761 billion dollars, the volume of imports - 838 billion dollars.
Main export positions in 2006
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|
Means of production |
|
|
cars and equipment |
|
|
Consumer goods |
|
|
Processed foods and beverages |
|
|
Main import positions in 2006 |
|
|
Percentage of the total |
|
|
Intermediate products |
|
|
Means of production |
|
|
Consumer goods |
|
|
cars and equipment |
|
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