France Economy

France is located in Western Europe and holds many locations in the world under its administration as well. It is bordered by Belgium, Germany, Monaco, Spain, Andorra and Switzerland. Its other territories border Brazil and Suriname. France is the largest state in the EU and is considered to be a well developed economy. The French people enjoy high standards of living. Owing to its rich and diversified culture, France receives almost 82 million tourists annually, making tourism one of the many contributors to France’s economy.

The French economy features a well developed private sector as well as a state sponsored segment. However, the latest measures suggest that the nation’s economy will see a transition from its state dominated structure to a more liberal and privately owned economy, which so far faces frequent and imposing intervention from the state and the government.

France Economy

In 2009, according to the WTO, France was the 6^th largest exporter and 5^th largest importer of manufactured goods. France has for long been receiving a lot of FDI, and in 2008, the country ranked 3^rd in the world among the OECD (Organization for Economic Co-operation and Development) countries.

France was able to handle the recession better than most other EU economies due to its well established and loyal consumer base, strategic government spending and lower exposure to the vagaries of the world economy.

However, the GDP contracted to 2.1% in 2009 and unemployment rose to 10%. The following graph shows how the economy behaved during 2007-2009 (in percentage):

However the GDP (purchasing power parity) remained almost constant for the French economy (2009 figures in trillions):

The GDP per capita showed corresponding behavior with the following figures:

• 2009 estimates- $32,800. The country ranked 39^th in the world

• 2008 estimates -$33,700

• 2007 estimates- $33,800

Trade declined due to the recession-affected demand. However, the well developed agriculture sector helped France’s economy, along with the services and industry sectors, in being self sufficient.

G20

France is part of the G20, Group of Twenty.

Further Resources

Find out more about forex in France.