Economic overview France, in 36 editions.

One of the world's most developed economies, France has substantial agricultural resources and a highly diversified modern industrial sector. Large tracts of fertile land, the application of modern technology, and subsidies have combined to make it the leading agricultural producer in Western Europe. France is largely self-sufficient in agricultural products and is a major exporter of wheat and dairy products. The industrial sector generates about one-third one-quarter of GDP GDP, and employs about one-third of the work force. During growing services sector has become crucial to the period 1982-86 economic economy. After sluggish growth was sluggish, averaging only 1.4% annually. This trend was reversed by late 1987, however, with during the period 1982-87, the economy expanded at a strong expansion rapid 3.8% pace in 1988-89. The economy slowed down in 1990, with growth of consumer demand, followed by a surge 2.0% expected in investment. 1991. The economy has had difficulty generating enough jobs for new entrants into the labor force, resulting in a high unemployment rate, but the upward trend in growth recently pushed which probably will rise to around 10% during the jobless rate below 10%. slowdown. The steadily advancing economic integration within the European Community is a major force affecting the fortunes of the various economic sectors.

One of the world's most developed economies, France has substantial
agricultural resources and a highly diversified modern industrial sector.
Large tracts of fertile land, the application of modern technology, and
subsidies have combined to make it the leading agricultural producer in
Western Europe. France is largely self-sufficient in agricultural products
and is a major exporter of wheat and dairy products. The industrial sector
generates about one-quarter of GDP, and the growing services sector has
become crucial to the economy. After sluggish growth during the period 1982-87, the economy expanded expanding at a rapid 3.8% pace in 1988-89. The during
the period 1988-89, the economy slowed down in 1990, with growth of 2.0% expected 1.5% in 1991.
1990 and 1.4% in 1991; growth in 1992 is expected to be about 2%. The
economy has had difficulty generating enough jobs for new entrants into the
labor force, resulting in a high unemployment rate, which probably will rise rose to around almost 10% during the slowdown.
in 1991. The steadily advancing economic integration within the European
Community is a major force affecting the fortunes of the various economic
sectors.

One of the world's most developed economies, France has substantial
agricultural resources and a highly diversified modern industrial sector.
Large tracts of fertile land, the application of modern technology, and
subsidies have combined to make it the leading agricultural producer in
Western Europe. France is largely self-sufficient in agricultural products
and is a major exporter of wheat and dairy products. The industrial sector
generates about one-quarter of GDP, and the growing services sector has
become crucial to the economy. After expanding at a rapid 3.8% pace during
the period 1988-89, the The French economy slowed down in 1990, with growth is entering its fourth
consecutive year of 1.5% sluggish growth after a strong expansion in the late
1990 1980s. Growth averaged only 1.3% in 1990-92 and 1.4% is expected to drop to
between zero and -0.5% in 1991; growth 1993. The government budget deficit rose to 3.2%
of GDP in 1992 and is expected to be about 2%. The far larger than planned in the 1993
economy has had difficulty generating enough jobs for new entrants into budget. Paris remains committed to maintaining the franc-deutsch mark
labor force, resulting in a high unemployment rate, parity, which rose to almost 10% has kept French interest rates high despite France's low
in 1991. The steadily advancing inflation. Although the pace of economic integration within the European
Community is has slowed down, integration presumably will remain a major force affecting
shaping the fortunes of the various economic
sectors.

One of the world's most developed economies, France has substantial
agricultural resources and a highly diversified modern industrial sector.
sector. Large tracts of fertile land, the application of modern
technology, and
subsidies have combined to make it the leading
agricultural producer in
Western Europe. France is largely Largely self-sufficient in agricultural products
and agricultural products, France is a major exporter of wheat and dairy
products. The industrial sector
generates about one-quarter of GDP,
and the growing services sector has
become crucial to the economy. The
Although French GDP contracted by 0.7% in 1993, the economy is entering its fourth showed
consecutive year signs of life by yearend. GDP growth, however, will remain sluggish growth after a strong expansion in the late
1980s. Growth averaged 1994 - perhaps reaching only 1.3% in 1990-92 and is expected to drop to
between zero and -0.5% in 1993. The government budget deficit rose to 3.2% 1.0%. Rapidly increasing unemployment
of GDP in 1992 and is expected to be far larger than planned in will still pose a major problem for the 1993
budget. government. Paris remains
committed to maintaining the franc-deutsch franc-deutsche mark
parity, which has
kept French interest rates high despite France's low
inflation.
Although the pace of economic integration within the European
Community has slowed down, integration presumably will remain a major force
force shaping the fortunes of the various economic sectors.

One of the world's most highly developed economies, France
has substantial
agricultural resources and a highly diversified modern industrial
industrial sector. Large tracts of fertile land, the application of modern
modern technology, and subsidies have combined to make it the leading
agricultural producer in Western Europe. Largely self-sufficient in
agricultural products, France is a major exporter of wheat and dairy
products. The industrial sector generates about one-quarter of GDP,
and the growing services sector has become crucial to the economy.
Although Following stagnation and recession in 1991-93, French GDP contracted by 0.7% in 1993, the economy showed 1994
signs of life by yearend. GDP growth, however, will remain sluggish expanded 2.4%. Growth in 1995 is expected to be in the 3.0% to 3.5%
1994 - perhaps reaching only 1.0%. Rapidly increasing range. Persistently high unemployment
will still pose a major problem
for the government. Paris remains
committed to maintaining the
franc-deutsche mark parity, which has
kept French interest rates high
despite France's low inflation.
Although the pace of economic and
financial integration within the European
Community Union has slowed down,
integration presumably will remain a major
force shaping the fortunes
of the various economic sectors. sectors over the next few years.

One of the world's most highly developed four West European trillion-dollar
economies, France the French economy features considerable - albeit
diminishing - state control over its capitalistic market system. In
running important industrial segments (railways, airlines,
electricity, telecommunications), administrating an exceptionally
generous social welfare system, and staffing an enormous
bureaucracy, the state spends about 55% of GDP. France has
substantial agricultural resources and a diversified modern
industrial sector. Large tracts of fertile land, the application of
modern technology, and subsidies have combined to make it the leading
leading agricultural producer in Western Europe. Largely
self-sufficient in
agricultural products, France is a major exporter
of wheat and dairy
products. The industrial sector generates about
one-quarter of GDP,
and the growing services sector has become
crucial to the economy.
Following stagnation and recession in
1991-93, French GDP in 1994
expanded 2.4%. Growth 2.4% in 1995 is expected to be 1994 and in the 3.0% to 3.5%
range. 1995. Persistently
high unemployment will still pose poses a major problem
for the government. government, as
will the need to cut back on welfare benefits and bureaucratic
budgets. Paris remains committed to maintaining the
franc-deutsche
mark parity, which has kept French interest rates high at the
despite France's low inflation. expense of jobs. Although the pace of economic and
financial
integration within the European Union has slowed down,
integration presumably
will remain a major force in France, shaping the fortunes
of the
various economic sectors over the next few years.

One of the four West European trillion-dollar
economies, the French economy features considerable - albeit
diminishing - state control over
its capitalistic market system. In
running important industrial
segments (railways, airlines,
electricity, telecommunications), administrating
administering an exceptionally
generous social welfare system, and
staffing an enormous
bureaucracy, the state spends about 55% of GDP.
France has
substantial agricultural resources and a diversified modern
industrial sector. Large tracts of fertile land, the application of
modern technology, and subsidies have combined to make it the
leading
agricultural producer in Western Europe. Largely
self-sufficient in
agricultural products, France is a major exporter
of wheat and dairy
products. The industrial sector generates about
one-quarter of GDP,
and the growing services sector has become
crucial to the economy.
Following stagnation and recession in
1991-93, French GDP expanded
2.4% in 1994 and in 1995. 1995 but at only 1.3% in 1996. Persistently
high
unemployment still poses a major problem for the government, as
will
the need to cut back on welfare benefits government spending to keep the economy
internationally competitive and bureaucratic enable France to qualify for European
budgets. Paris remains committed Economic and Monetary Union, slated to maintaining the franc-deutsche introduce a common European
mark parity, which currency in January 1999. The government also has kept French interest rates high at the laid plans to sell
expense off much of jobs. Although its stake in the pace of economic telecommunications and financial
integration within the European Union has slowed down, integration defense industries
will remain a major force in France, shaping the fortunes 1997 as part of its bid to make domestic companies more competitive
with foreign rivals. However, the socialist victory at the polls in
various June 1997 casts doubt on France's future policy toward economic sectors over the next few years. union
and privatization of domestic economic activity.

One of the four West European trillion-dollar
economies, France matches a growing services sector with a diversified
diversified industrial base and substantial agricultural resources. Services now
account for more than 70% of GDP, while industry Industry generates about
one-quarter of GDP and more than 80% of export
earnings. The
government retains considerable influence over key
segments of each
sector, with majority ownership of railway,
electricity, aircraft, and
telecommunication firms. It nevertheless has been slowly
gradually relaxing its
control over these sectors since the early 1990s, most recently
selling 23% of France Telecom. 1990s. The government also plans to sell is slowly selling off its holdings in France
stakes Telecom, in Air France France, and in the insurance, banking, and defense
industries. Meanwhile, large tracts of fertile land, the application
of modern technology, and subsidies have combined to make France the
leading agricultural producer in Western Europe. A major exporter of
wheat and dairy products, France is virtually practically self-sufficient in
agriculture. The economy expanded by 2.3% last year, 3% in 1998, following a 1.3% 2.3%
gain in 1996. 1997. Persistently high unemployment still poses a major
problem for the government, however, as does the need to control
government spending to keep the economy internationally competitive
and meet membership qualifications for the European Economic and
Monetary Union (EMU) which is slated to introduce a common European
currency in January 1999. Succeeding governments have government. France has shied away from
cutting
exceptionally generous social welfare benefits or the enormous
state
bureaucracy, preferring to pare defense spending and raise taxes
to
keep the deficit down. The JOSPIN administration has pledged both
to
lower unemployment and bring France into EMU, trim spending, pinning its hopes for
new jobs
on economic growth and on legislation to gradually reduce the
workweek from 39 to 35 hours by 2002. France joined 10 other EU
members to launch the euro on 1 January 1999.

One of the four West European trillion-dollar
economies, France matches a growing services sector France's economy combines modern capitalistic methods with a
diversified industrial base and substantial agricultural resources.
Industry generates one-quarter of GDP and more than 80% of export
earnings. extensive, but declining, government intervention. The government retains considerable influence over key
segments of each sector, with majority ownership of railway,
electricity, aircraft, and telecommunication firms. It has been
gradually relaxing its control over these sectors since the early
1990s. The government is slowly selling off its holdings in France
Telecom, in Air France, and in the insurance, banking, and defense
industries. Meanwhile, large tracts of fertile land, the application
of modern technology, and subsidies have combined to make France the
leading agricultural producer in Western Europe. A major exporter of
wheat and dairy products, France is practically self-sufficient in
agriculture. The economy expanded by 3% in 1998, following a 2.3%
gain in 1997. Persistently high unemployment still poses will continue to pose a major
problem for the government. government; a 35-hour work week is being introduced. France has shied away from cutting
exceptionally generous social welfare benefits or the enormous state
bureaucracy, preferring to pare defense spending and raise taxes to
keep the deficit down. The JOSPIN administration has pledged both to
lower unemployment and trim spending, pinning its hopes for new jobs
on economic growth and on legislation to gradually reduce the
workweek from 39 to 35 hours by 2002. France joined 10 other EU
members to launch the euro on 1 January 1999.

France is in the midst of a gradual transition, from an 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, but still retains large stakes in several leading firms, including Air France, France Telecom, and Renault, and remains dominant in some sectors, particularly the power, public transport, and defense industries, but it has been relaxing its control since the mid-1980s. The Socialist-led government has sold off part of its holdings in France Telecom, Air France, Thales, Thomson Multimedia, and the European Aerospace and Defense Company (EADS). 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 but has done little to cut generous unemployment reform an overly expensive pension system, rigid labor market, and retirement benefits restrictive bureaucracy which impose a heavy tax burden and discourage hiring. It has also shied from measures that would dramatically increase the use of stock options and retirement investment plans; such measures would boost the stock market hiring and fast-growing IT firms as well as ease make the tax burden on the pension system, but would disproportionately benefit one of the rich. highest in Europe. In addition to the tax burden, the reduction of the work week workweek to 35-hours 35 hours has drawn criticism for lowering the competitiveness of French companies. businesses. The current economic slowdown has thrown the government's goal of balancing the budget by 2004 off track.

France is in the midst of a gradual 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 Socialist-led government has partially or fully privatized many large companies, banks, and insurers, but still retains large controlling stakes in several leading firms, including Air France, France Telecom, and Renault, and Thales, and remains dominant in some sectors, particularly the 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 current government has lowered income taxes and introduced measures to boost employment but has done little to reform an overly expensive pension system, rigid employment. At the end of 2002 the government was focusing on the problems of the high cost of labor market, and restrictive bureaucracy which discourage hiring and make labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The government was also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe. In addition to the tax burden, the reduction of the workweek to 35 hours has drawn criticism for lowering the competitiveness of French businesses. The current economic slowdown has thrown and inflexible budget items have pushed the government's goal deficit above the EU's 3% debt limit. Business investment remains listless because of balancing low rates of capital utilization, high debt, and the budget by 2004 off track. steep cost of capital.

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 Socialist-led government has partially or fully privatized many large companies, banks, and insurers, but still the government retains controlling stakes in several leading firms, including Air France, France Telecom, Renault, and Thales, and remains 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 current government has lowered income taxes and introduced measures to boost employment. At the end of 2002 the The government was 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 government was is also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe. Europe (43.8% of GDP in 2003). The current economic slowdown and inflexible budget items have pushed the 2003 deficit to 4% of GDP, above the EU's 3% debt limit. Business investment remains listless because of low rates of capital utilization, sluggish demand, high debt, and the steep cost of capital.

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 Socialist-led government has partially or fully privatized many large companies, banks, and insurers, but the government 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 current government has lowered income taxes and introduced measures to boost employment. The government 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 government is also pushing for pension reforms and simplification of administrative procedures. The tax burden remains one of the highest in Europe (43.8% of GDP in 2003). The current lingering economic slowdown and inflexible budget items have pushed the 2003 budget deficit to 4% of GDP, above the EU's 3% debt eurozone's 3%-of-GDP limit. Business investment remains listless because of low rates of capital utilization, sluggish demand, high debt, and Finance Minister Herve GAYMARD has promised that the steep cost of capital. 2005 deficit will fall below 3%.

France is in the midst of transition, 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% (nearly 50% of GDP in 2003). 2005). 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%. limit; unemployment stands at 10%.

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 insurers, and has ceded stakes in several such leading firms, including firms as Air France, France Telecom, Renault, and Thales, and is dominant Thales. It maintains a strong presence 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 in 2006 focused on introducing measures that attempt to boost employment and reform the pension system. In addition, it is focusing on the problems of the high cost of labor and through increased labor market inflexibility resulting from flexibility; however, the 35-hour workweek and restrictions on lay-offs. population has remained opposed to labor reforms, hampering the government's ability to revitalize the economy. The tax burden remains one of the highest in Europe (nearly 50% of GDP in 2005). The lingering economic slowdown and inflexible budget items have probably pushed the budget deficit above the eurozone's 3%-of-GDP limit; limit in 2006; unemployment stands hovers near 9%. With at 10%. least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.

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, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence 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 in 2006 focused on introducing measures that attempt Widespread opposition to boost employment through increased labor market flexibility; however, the population reform has remained opposed to labor reforms, hampering in recent years hampered the government's ability to revitalize the economy. The In 2007, the government launched divisive labor reform efforts that will continue into 2008. France's tax burden remains one of the highest in Europe (nearly 50% of GDP in 2005). The lingering economic slowdown and inflexible budget items probably pushed France brought the budget deficit above within the eurozone's 3%-of-GDP limit for the first time in 2006; 2007 and has reduced unemployment hovers near 9%. to roughly 8%. With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.

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, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence 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. Widespread opposition to labor reform has in recent years hampered the government's ability to revitalize the economy. In 2007, During 2007-08, the government launched divisive implemented several important labor reforms, including a de facto extension of the 35-hour workweek by allowing employees to work longer overtime hours. During 2009, the government is expected to delay or even renounce other reform efforts that will due to the on-going financial crisis. GDP growth dropped to 0.3% in 2008; the French government plans to increase public investment and continue injecting capital into 2008. the banking sector to alleviate the negative effects of the crisis during 2009. As a result of lower fiscal revenues and increased expenditures the general government deficit is expected to exceed the euro-zone ceiling 3% of GDP. France's tax burden remains one of the highest in Europe (nearly - at nearly 50% of GDP in 2005). France brought the budget deficit within the eurozone's 3%-of-GDP limit for the first time in 2007 and has reduced unemployment to roughly 8%. 2005. With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.

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, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence in some sectors, particularly power, public transport, and defense industries. The telecommunications sector With at least 75 million foreign tourists per year, France is gradually being opened to competition. the most visited country in the world and maintains the third largest income in the world from tourism. 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. Widespread opposition to labor reform France has in recent years hampered the government's ability to revitalize the economy. During 2007-08, weathered the government implemented several important labor reforms, including a de facto extension global economic crisis better than most other big EU economies because of the 35-hour workweek by allowing employees relative resilience of domestic consumer spending, a large public sector, and less exposure to work longer overtime hours. During 2009, the government is expected to delay or even renounce downturn in global demand than in some other reform efforts due to the on-going financial crisis. countries. Nonetheless, France's real GDP growth dropped to 0.3% contracted 2.5% in 2008; 2009, but recovered somewhat in 2010, while the French government plans unemployment rate increased from 7.4% in 2008 to increase public investment 9.5% in 2010. The government pursuit of aggressive stimulus and continue injecting capital into the banking sector investment measures in response to alleviate the negative effects of the crisis during 2009. As economic crisis, however, are contributing to a result deterioration of lower fiscal revenues and increased expenditures the general France's public finances. The government budget deficit rose sharply from 3.4% of GDP in 2008 to 7.8% of GDP in 2010, while France's public debt rose from 68% of GDP to 84% over the same period. Paris is expected terminating stimulus measures, eliminating tax credits, and freezing most government spending to exceed bring the budget deficit under the 3% euro-zone ceiling 3% of GDP. by 2013, and to highlight France's tax burden remains one commitment to fiscal discipline at a time of the highest in Europe intense financial market scrutiny of euro zone debt levels. President SARKOZY - at nearly 50% who secured passage of GDP pension reform in 2005. With at least 75 million foreign tourists per year, France 2010 - is the most visited country in the world and maintains the third largest income expected to seek passage of some tax reforms in 2011, but he may delay additional, more costly, reforms until after the world from tourism. 2012 election.

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, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. 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. France has weathered the global economic crisis better than most other big EU economies because of the relative resilience of domestic consumer spending, a large public sector, and less exposure to the downturn in global demand than in some other countries. Nonetheless, France's real GDP contracted 2.5% in 2009, but recovered somewhat in 2010, while the unemployment rate increased from 7.4% in 2008 to 9.5% in 2010. The government pursuit of aggressive stimulus and investment measures in response to the economic crisis, however, are contributing to a deterioration of France's public finances. The government budget deficit rose sharply from 3.4% of GDP in 2008 to 7.8% 6.9% of GDP in 2010, while France's public debt rose from 68% of GDP to 84% 82% over the same period. Paris is terminating stimulus measures, eliminating tax credits, and freezing most government spending to bring the budget deficit under the 3% euro-zone ceiling by 2013, and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro zone debt levels. President SARKOZY - who secured passage of pension reform in 2010 - is expected to seek passage of some tax reforms in 2011, but he may delay additional, more costly, reforms until after the 2012 election.

France is in the midst of transition from a well-to-do modern The French economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. is diversified across all sectors. The government has partially or fully privatized many large companies, banks, and insurers, and has ceded stakes in such leading firms as including Air France, France Telecom, Renault, and Thales. It However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 75 79 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. 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. France has weathered the global economic crisis better than most other big EU economies because of the relative resilience of domestic consumer spending, a large public sector, and less exposure to the downturn in global demand than in some other countries. Nonetheless, France's real GDP contracted 2.5% 2.6% in 2009, but recovered somewhat in 2010, while the 2010 and 2011, before stagnating in 2012. The unemployment rate increased from 7.4% in 2008 to 9.5% in 2010. The government pursuit of aggressive stimulus and investment measures in response to the economic crisis, however, are contributing to a deterioration of has remained above 9% per year since then. Lower-than-expected growth and increased unemployment have strained France's public finances. The government budget deficit rose sharply from 3.4% of GDP in 2008 to 6.9% 7.5% of GDP in 2010, 2009 before improving to 4.5% of GDP in 2012, while France's public debt rose from 68% of GDP to 82% 89% over the same period. Under President SARKOZY, Paris is terminating stimulus measures, eliminating tax credits, and freezing most government spending implemented some austerity measures to bring the budget deficit under the 3% euro-zone ceiling by 2013, 2013 and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro zone debt levels. President SARKOZY - who secured passage euro-zone debt. Socialist Party candidate Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, the separation of pension reform banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, and hiring an additional 60,000 teachers during his five-year term. France ratified the EU fiscal stability treaty in 2010 - is expected October 2012 and HOLLANDE's government has maintained France's commitment to seek passage meeting the budget deficit target of some tax reforms in 2011, but he may delay additional, more costly, reforms until after 3% of GDP during 2013 even amid signs that economic growth will be lower than the government's forecast of 0.8%. Despite stagnant growth and fiscal challenges, France's borrowing costs declined during the second half of 2012 election. to euro-era lows.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 79 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. 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. France's real GDP contracted 2.6% in 2009, but recovered somewhat in 2010 and 2011, before stagnating in 2012. The unemployment rate increased from 7.4% in 2008 and has remained above 9% per year since then. to 10.3% in 2012. Youth unemployment shot up to 24.2% during the third quarter of 2012 in metropolitan France. Lower-than-expected growth and increased high unemployment costs have strained France's public finances. The budget deficit rose sharply from 3.4% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.5% 4.8% of GDP in 2012, while France's public debt rose from 68% of GDP to 89% 90% over the same period. Under President SARKOZY, Paris implemented some austerity measures to bring the budget deficit under the 3% euro-zone ceiling by 2013 and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro-zone debt. Socialist Party candidate Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, the separation of banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, and hiring an additional 60,000 teachers during his five-year term. The government's attempt to introduce a 75% wealth tax on income over one million euros for two years was struck down by the French Constitutional Council in December 2012 because it applied to individuals rather than households. France ratified the EU fiscal stability treaty in October 2012 and HOLLANDE's government has maintained France's commitment to meeting the budget deficit target of 3% of GDP during 2013 even amid signs that economic growth will be lower than the government's forecast of 0.8%. Despite stagnant growth and fiscal challenges, France's borrowing costs declined during the second half of 2012 to euro-era lows.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 79 82 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. 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. mitigate economic inequality. France's real GDP contracted 2.6% in 2009, but recovered somewhat stagnated in 2010 2012 and 2011, before stagnating in 2012. 2013. The unemployment rate (including overseas territories) increased from 7.4% 7.8% in 2008 to 10.3% 10.2% in 2012. 2013. Youth unemployment shot up to 24.2% during in metropolitan France decreased from a high of 25.4% in the third fourth quarter of 2012 to 22.8% in metropolitan France. the fourth quarter of 2013. Lower-than-expected growth and high unemployment costs spending have strained France's public finances. The budget deficit rose sharply from 3.4% 3.3% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.8% 4.1% of GDP in 2012, 2013, while France's public debt rose from 68% of GDP to 90% nearly 94% over the same period. Under President SARKOZY, Paris implemented some austerity measures to bring the budget deficit under the 3% euro-zone ceiling by 2013 and to highlight France's commitment to fiscal discipline at In accordance with its EU obligations, France is targeting a time deficit of intense financial market scrutiny 3.6% of euro-zone debt. Socialist Party candidate GDP in 2014 and 2.8% in 2015. The administration of President Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, has implemented greater state support for employment, the separation of banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, including a temporary 75% tax on wages over one million euros, and hiring an additional 60,000 teachers during his five-year term. The government's attempt to introduce In January 2014 HOLLANDE proposed a 75% wealth tax on income over one million euros for two years was struck down by the French Constitutional Council in December 2012 because it applied to individuals rather than households. France ratified the EU fiscal stability treaty “Responsibility Pact” aimed primarily at lowering labor costs in October 2012 and HOLLANDE's government has maintained France's return for businesses’ commitment to meeting the budget deficit target of 3% of GDP during 2013 even amid signs that economic growth will be lower than the government's forecast of 0.8%. create jobs. Despite stagnant growth and fiscal challenges, France's borrowing costs have declined during in recent years because investors remain attracted to the second half liquidity of 2012 to euro-era lows. France’s bonds.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 82 more than 84 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality. France's real GDP stagnated increased by 0.4% in 2012 and 2013. 2014. The unemployment rate (including overseas territories) increased from 7.8% in 2008 to 10.2% 10.4% in 2013. the fourth quarter of 2014. Youth unemployment in metropolitan France decreased from a high of 25.4% in the fourth quarter of 2012 to 22.8% 24.3% in the fourth quarter of 2013. 2014. Lower-than-expected growth and high spending have strained France's public finances. The budget deficit rose sharply from 3.3% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.1% 4% of GDP in 2013, 2014, while France's public debt rose from 68% of GDP to nearly 94% over the same period. In accordance more than 95% in 2014, and may hit 100% by 2016. Elected on a conventionally leftist platform, President Francois HOLLANDE surprised and angered many supporters with its EU obligations, France is targeting a deficit of 3.6% of GDP in January 2014 and 2.8% speech announcing a sharp change in 2015. his economic policy, recasting himself as a liberalizing reformer. The administration government's budget for 2014 shifted the balance of President Francois fiscal consolidation from taxes to a total of $24 billion in spending cuts. In December 2014, HOLLANDE has implemented greater announced additional reforms, including a plan to extend commercial business hours, liberalize professional services, and sell off $6.2-12.4 billion in state support for employment, owned assets. France’s tax burden remains well above the separation of banks' traditional deposit taking EU average and lending activities from more speculative businesses, increasing income tax cuts over the past decade are being partly reversed, particularly for higher earners. The top corporate and personal rate of income tax rates, including is 41%. The government is allowing a temporary 75% payroll tax on wages salaries over one $1.24 million euros, and hiring an additional 60,000 teachers during his five-year term. In January 2014 HOLLANDE proposed a “Responsibility Pact” aimed primarily at lowering labor costs in return for businesses’ commitment to create jobs. Despite stagnant growth and fiscal challenges, France's borrowing costs have declined in recent years because investors remain attracted to the liquidity of France’s bonds. lapse.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With more than 84 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality.
France's real GDP increased by 0.4% 1.1% in 2014. 2015. The unemployment rate (including overseas territories) increased from 7.8% in 2008 to 10.4% 9.9% in the fourth quarter of 2014. Youth unemployment in metropolitan France decreased from a high of 25.4% in the fourth quarter of 2012 to 24.3% in the fourth quarter of 2014.
Lower-than-expected growth and high spending have strained France's public finances. The budget deficit rose sharply from 3.3% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4% of GDP in 2014, 2014 and 2015, while France's public debt rose from 68% of GDP to more than 95% 98% in 2014, 2015, and may hit 100% by in 2016.
Elected on a conventionally leftist platform, President Francois HOLLANDE surprised and angered many supporters with a January 2014 speech announcing a sharp change in his economic policy, recasting himself as a liberalizing reformer. The government's budget for 2014 shifted the balance of fiscal consolidation from taxes to a total of $24 billion in spending cuts. In December 2014, HOLLANDE announced additional reforms, including a plan to extend commercial business hours, liberalize professional services, and sell off $6.2-12.4 billion in state owned assets. France’s tax burden remains well above the EU average and income tax cuts over the past decade are being partly reversed, particularly for higher earners. The top rate of income tax is 41%. The government is allowing a 75% payroll tax on salaries over $1.24 million to lapse.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With more than 84 million foreign tourists per year, Despite terrorist attacks, labor strikes, and bad weather, France is still the most visited country in the world and maintains the third largest income with 83 million foreign tourists in 2016, including 530,000 who came for the world from tourism. 2016 Euro Cup. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality.
France's real GDP increased grew by 1.1% in 2015. 2016, down from 1.3% the year before. The unemployment rate (including overseas territories) increased from 7.8% in 2008 to 9.9% 10.2% in the fourth quarter of 2014. 2015, before slightly falling to 10% in 2016. Youth unemployment in metropolitan France decreased from a high of 25.4% 24.6% in the fourth quarter of 2012 2014 to 24.3% 24% in the fourth quarter of 2014. 2016.
Lower-than-expected growth and high spending have strained France's public finances. The Despite measures to restore public finances since President Francois HOLLANDE took office in 2012, the budget deficit rose sharply from 3.3% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4% 3.4% of GDP in 2014 and 2015, while 2016. Meanwhile, France's public debt rose from 68% 89.5% of GDP to more than 98% in 2015, and may hit 100% 2012 to 96% in 2016.
Elected on a conventionally leftist platform, President Francois HOLLANDE surprised HOLLANDE’s policies aimed to enhance French industry’s competitiveness and angered many supporters with a January 2014 speech announcing a sharp change in his economic policy, recasting himself as a liberalizing reformer. to lower high jobless figures. The government's budget for 2014 shifted the balance Competitiveness and Employment Tax Credit of fiscal consolidation from taxes to a total 2012, the Responsibility and Solidarity Pact of $24 billion in spending cuts. In December 2014, HOLLANDE announced additional reforms, including a plan to extend commercial business hours, liberalize professional services, the Investment Stimulus Plan, and sell off $6.2-12.4 the Emergency Jobs Plan represent more than $42.6 billion in state owned assets. France’s tax burden remains well above support for businesses in 2017 by lowering French labor costs, but so far the EU average results of these policies have been marginal on France’s competitiveness and income tax cuts over job creation. In an effort to bolster social justice, the past decade are being partly reversed, particularly 2017 budget bill contained provisions to reduce income taxes for higher earners. households and for small and medium sized enterprises.
During his mandate, President HOLLANDE oversaw two highly unpopular economic reforms that led to widespread protests. The top rate “Macron Law” of income tax is 41%. 2015, enacted to boost economic growth, authorized businesses to open some Sundays of each month and allowed flexibility to negotiate pay and working hours. The government is allowing a 75% payroll tax on salaries over $1.24 million “El Khomri law,” imposed by decree in 2016, aimed to lapse. make it easier for businesses to employ people and gave employers more leeway to negotiate hours, wages, and time off.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. Despite terrorist attacks, labor strikes, and bad weather, France is still the most visited country in the world with 83 89 million foreign tourists in 2016, including 530,000 who came for the 2016 Euro Cup. 2017. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality.
France's real GDP grew by 1.1% 1.9% in 2016, down 2017, up from 1.3% 1.2% the year before. The unemployment rate (including overseas territories) increased from 7.8% in 2008 to 10.2% in 2015, before slightly falling to 10% 9.0% in 2016. 2017. Youth unemployment in metropolitan France decreased from 24.6% in the fourth quarter of 2014 to 24% 20.6% in the fourth quarter of 2016.
Lower-than-expected growth and high spending have strained France's public finances. Despite measures to restore 2017. France’s public finances since President Francois HOLLANDE took office in 2012, have historically been strained by high spending and low growth. In 2017, the budget deficit rose from 3.3% of GDP in 2008 to 7.5% of GDP in 2009 before improving improved to 3.4% 2.7% of GDP GDP, bringing it in 2016. compliance with the EU-mandated 3% deficit target. Meanwhile, France's public debt rose from 89.5% of GDP in 2012 to 96% 97% in 2016.
2017. Since entering office in May 2017, President HOLLANDE’s policies aimed Emmanuel MACRON launched a series of economic reforms to enhance French industry’s improve competitiveness and to lower high jobless figures. The Competitiveness and Employment Tax Credit of 2012, the Responsibility and Solidarity Pact of 2014, the Investment Stimulus Plan, boost economic growth. President MACRON campaigned on reforming France’s labor code and the Emergency Jobs Plan represent more than $42.6 billion in support for businesses in late 2017 by lowering French labor costs, but so far the results implemented a range of these policies have been marginal on France’s competitiveness and job creation. In an effort reforms to bolster social justice, increase flexibility in the 2017 budget bill contained provisions to reduce income taxes labor market by making it easier for households firms to hire and for small fire and medium sized enterprises.
During his mandate, President HOLLANDE oversaw two highly unpopular economic reforms that led to widespread protests. The “Macron Law” of 2015, enacted to boost economic growth, authorized businesses simplifying negotiations between employers and employees. In addition to open some Sundays of each month labor reforms, President MACRON’s 2018 budget cuts public spending, taxes, and allowed flexibility social security contributions to negotiate pay spur private investment and working hours. increase purchasing power. The “El Khomri law,” imposed by decree in 2016, aimed government plans to make it easier gradually reduce corporate tax rate for businesses to employ people and gave employers more leeway from 33.3% to negotiate hours, wages, and time off. 25% by 2022.

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. France is the most visited country in the world with 89 million foreign tourists in 2017. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality.
France's real GDP grew by 1.9% in 2017, up from 1.2% the year before. The unemployment rate (including overseas territories) increased from 7.8% in 2008 to 10.2% in 2015, before falling to 9.0% in 2017. Youth unemployment in metropolitan France decreased from 24.6% in the fourth quarter of 2014 to 20.6% in the fourth quarter of 2017.
France’s public finances have historically been strained by high spending and low growth. In 2017, the budget deficit improved to 2.7% of GDP, bringing it in compliance with the EU-mandated 3% deficit target. Meanwhile, France's public debt rose from 89.5% of GDP in 2012 to 97% in 2017.
Since entering office in May 2017, President Emmanuel MACRON launched a series of economic reforms to improve competitiveness and boost economic growth. President MACRON campaigned on reforming France’s labor code and in late 2017 implemented a range of reforms to increase flexibility in the labor market by making it easier for firms to hire and fire and simplifying negotiations between employers and employees. In addition to labor reforms, President MACRON’s 2018 budget cuts public spending, taxes, and social security contributions to spur private investment and increase purchasing power. The government plans to gradually reduce corporate tax rate for businesses from 33.3% to 25% by 2022.

high-income, advanced and diversified EU economy and euro user; strong tourism, aircraft manufacturing, pharmaceuticals, and industrial sectors; strong US partner; high public debt; ongoing pension reform protests and civil unrest; efforts; transitioning to a green economy via "France 2030" strategy

high-income, advanced and diversified EU economy and euro user; eurozone member; strong tourism, aircraft manufacturing, pharmaceuticals, and industrial sectors; high public debt; ongoing pension reform efforts; transitioning to a green economy via "France 2030" strategy