France French
Posted in Uncategorized on 11/23/2004 06:41 am by admin
France French
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Overview of the Economy of France
France
Its economy places France among the top leading countries in Europe. It is one of Europe’s major importers and exporters with a wide range of items. France’s trading power makes it one of the top three largest traders in the European Union. French GDP reached at US$2.2 Trillions in 2006, with an annual growth rate of 2%. Growth rate of GDP has declined to 1.2 % in 2005 from 4 % in 2000. France is a member of the G8 countries, and is ranked fifth or sixth economy in the world by nominal GDP. France launched the euro in 1999 with its national currency being replaced completely by the beginning of 2002.
France is best known for its wines, cheese, and wheat. In fact, French agriculture accounts for around 25% of the total agricultural products of the European Union. This percentage can also be accounted for by the use of modern technology, EU subsidies, large areas of fertile land and good climate. However, agriculture contributes to the country’s GDP with only 2.5%. Nonetheless, the French government provides subsidies so that the agricultural sector continues to expand and increase its contribution to the GDP. This is also aimed at increasing exports.
As far as exports are concerned, the most important trading partners of France are UK, Germany, Spain and Italy. One of the most significant contributors to the national economy of France is the manufacturing industry with almost 27% to GDP. Also, France is the only European country except Russia and Sweden to own its national spaceport along with an important aerospace industry. Regarding imports, they consist primarily of cars and vehicles, aircraft, machinery, plastics and chemicals. These items are mostly imported from Germany, Belgium, Italy, Spain, UK, US and the Netherlands. As far as its balance of trade, it is interesting to note that in 2005, France imported goods worth US$471.36 billion and the exported goods worth US$439.22 billion.
France’s economy is a combination of private enterprise and government intervention. However, the latter has been declining substantially with the government selling off holdings in France Telecom, Air France, as well as the insurance, banking and defense sectors. Despite the decline, the government holds significant influence over key segments of infrastructure sectors. Tourism is also a very important contributor to national economy. In fact, France is the first tourist destination of the world with over 80 million foreign tourists every year, ahead of Spain and the United States.
Further reading in www.economywatch.com:
About the Author
I have studied economics for years and love to write about economic trends and conditions. I write for www.economywatch.com and www.economypedia.com.
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