France Business Resources

Economy - overview:
France is in the midst of transition, from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The government has partially or fully privatized many large companies, banks, and insurers. It retains controlling stakes in several leading firms, including Air France, France Telecom, Renault, and Thales, and is dominant in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. The government has lowered income taxes and introduced measures to boost employment and reform the pension system. In addition, it is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The tax burden remains one of the highest in Europe (43.8% of GDP in 2003). The lingering economic slowdown and inflexible budget items have pushed the budget deficit above the eurozone's 3%-of-GDP limit. Finance Minister Herve GAYMARD has promised that the 2005 deficit will fall below 3%.

Agriculture
wheat, cereals, sugar beets, potatoes, wine grapes; beef, dairy products; fish

Airlines
Airlines in Europe
Airlines Worldwide

Airports
Airports in Europe
Airports Worldwide

Country Budget
revenues: $1.005 trillion
expenditures: $1.08 trillion, including capital expenditures of $23 billion (2004 est.)

Currency (code)
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Currency Exchange Rate
euros per US dollar - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)

Fiscal Year
calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity): $1.737 trillion (2004 est.)
GDP - real growth rate: 2.1% (2004 est.)
GDP - per capita: purchasing power parity - $28,700 (2004 est.)
GDP - composition by sector:
agriculture: 2.7%
industry: 24.3%
services: 73% (2004 est.)

Imports / Exports
Exports: $419 billion f.o.b. (2004 est.)
Exports - commodities: machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages
Exports - partners: Germany 15%, Spain 9.5%, UK 9.3%, Italy 9%, Belgium 7.2%, US 6.7% (2004)

Imports: $419.7 billion f.o.b. (2004 est.)
Imports - commodities: machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals
Imports - partners: Germany 19.2%, Belgium 9.9%, Italy 8.8%, Spain 7.4%, UK 7%, Netherlands 6.7%, US 5.1% (2004)

Industries
machinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourism

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force: 27.7 million (2004 est.)
Labor force - by occupation: agriculture 4.1%, industry 24.4%, services 71.5% (1999)
Unemployment rate: 10.1% (2004 est.)