. Index  

. Flag  

. Geography  

. People 

. Government  

. Economy 

.Transportation

.Commun'tions

. Defense

. Gender Issues 

. HR Issues  

. Media  

. Relevant Links

. Feedback   

=========== 

France

 
     
    • Overview: 
      One of the world's most highly developed economies, 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 in 1994 expanded 2.4%. 

      With a 1995 GDP of more than $1.5 trillion, France is the fourth-largest Western industrialized economy. It has substantial agricultural resources, a diversified modern industrial system, and a highly skilled labor force. In 1995, France's economic growth rate was 2.2%. The estimated growth rate for 1996 is 1.4%. 

      Government policy stresses investment promotion and maintenance of fiscal and monetary discipline. It seeks to ensure the franc's stability and strength within the European Monetary System. The government continues to exert considerable control over the industrial sector both through planning and regulatory activities and through direct state ownership, although a modest privatization program has been implemented. This policy has helped keep France's inflation rate (1.8% in 1995) low compared with rates among the other Group of Seven (G-7) industrial countries. 

      One main area of concern, however, continues to be an unemployment rate that is well over 12%. France's well-developed and diversified industrial enterprises generate over one-half of the GDP and employ about one-fifth of the workforce. This distribution is similar to that of other highly industrialized nations. The most important areas of industrial production include steel and related products, aluminum, chemicals, and mechanical and electrical goods. 

      France also has been very successful in developing dynamic telecommunications, aerospace, and weapons sectors. With virtually no domestic oil production, France has relied heavily on the development of nuclear power, which now produces about 80% of the country's electrical energy. Nuclear waste is stored on site at reprocessing facilities. 

      Membership in France's labor unions accounts for about 10% of the workforce. Included in the composition of the several competing union confederations are the largest, oldest, and most powerful unions: the Communist-dominated General Labor Confederation, the Workers' Force, and the French Democratic Confederation of Labor. 

      Trade 
      France is the second-largest trading nation in Western Europe (after Germany). In 1996, France achieved a record trade surplus of over $20 billion. The surplus was partly attributable to the surge in exports due to greater competitiveness of French products, which, in turn, was partly due to low domestic inflation and wage costs. For 1996, the country's trade surplus rose even higher. Its total trade for 1995 amounted to more than $550 billion. Trade with European Union (EU) countries accounts for 60% of French trade. 

      In 1995, U.S.-France trade totaled about $40 billion. U.S. exports accounted for 7.8% (or about $21 billion) of France's total imports. U.S. industrial chemicals, aircraft and engines, electronic components, telecommunications, computer software, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, broadcasting equipment, and programming and franchising are particularly attractive to French importers. 

      Principal French exports to the United States are aircraft and engines, beverages, electrical equipment, chemicals, cosmetics, and luxury products. 

      Agriculture 
      France is the European Union's leading agricultural producer, accounting for about one third of all agricultural land within the EU. Northern France is characterized by large wheat farms. Dairy products, pork, poultry and apple production are concentrated in the Western region. Beef production is located in Central France, while the production of fruits, vegetables, and wine ranges from Central to Southern France. France is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the Common Agricultural Policy (CAP) and the Uruguay Round of the GATT Agreement have resulted in reforms in the agricultural sector of the economy. 

      France is the world's second largest agricultural producer, after the United States. However, the destination of 70% of its exports are other EU Member States. Wheat, beef, pork, poultry, and dairy products are the principal exports. The United States, although the second largest exporter to France, faces stiff competition from domestic production, other EU Member States and other third countries. U.S. agricultural exports to France, totaling some $600 million annually, consist primarily of soybeans and products, feeds and fodders, seafood, and consumer oriented products, especially snack foods and nuts. French exports to the United States are mainly cheese, processed products and wine. They amount to over $900 million annually. 

     
    • National product: 
      GDP - purchasing power parity - $1.5 trillion (1997 est.) 
     
    • National product real growth rate: 
      2.4% (1997 est.) 
     
    • National product per capita: 
      $26,670 (1997 est.) 
     
    • Inflation rate (consumer prices): 
      1.6% (1997 est.) 
     
    • Unemployment rate: 
      12.6% (year end 1994) 
     
    • Exports: 
      $249.2 billion (f.o.b., 1997 est.) 
     
        commodities: 
        machinery and transportation equipment, chemicals, foodstuffs, agricultural products, iron and steel products, textiles and clothing 
     
        partners: 
        Germany 18.6%, Italy 11.0%, Spain 11.0%, Belgium-Luxembourg 9.1%, UK 8.8%, Netherlands 7.9%, US 6.4%, Japan 2.0%, FSU 0.7%  
     
    • Imports: 
      $238.1 billion (c.i.f., 1997 est.) 
     
        commodities: 
        crude oil, machinery and equipment, agricultural products, chemicals, iron and steel products 
     
        partners: 
        Germany 17.8%, Italy 10.9%, US 9.5%, Netherlands 8.9%, Spain 8.8%, Belgium-Luxembourg 8.5%, UK 7.5%, Japan 4.1%, FSU 1.3%  
     
    • External debt: 
      $300 billion (1997 est.) 
     
    • Industrial production: 
      growth rate 2.6% (1994 est.) 
     
    • Electricity: 
     
        capacity: 
        105,250,000 kW 
     
        production: 
        447 billion kWh 
     
        consumption per capita: 
        6,149 kWh (1993) 
     
    • Industries: 
      steel, machinery, chemicals, automobiles, metallurgy, aircraft, electronics, mining, textiles, food processing, tourism 
     
    • Agriculture: 
      accounts for 4% of GDP (including fishing and forestry); one of the world's top five wheat producers; other principal products - beef, dairy products, cereals, sugar beets, potatoes, wine grapes; self-sufficient for most temperate-zone foods; shortages include fats and oils and tropical produce, but overall net exporter of farm products; fish catch of 850,000 metric tons ranks among world's top 20 countries and is all used domestically 
     
    • Economic aid: 
     
        donor: 
        ODA and OOF commitments (1970-89), $75.1 billion 
     
    • Currency: 
      1 French franc (F) = 100 centimes 
     
    • Exchange rates: 
      French francs (F) per US$1 - 5.9243 (January 1995), 5.5520 (1994), 5.6632 (1993), 5.2938 (1992), 5.6421 (1991), 5.4453 (1990) 
     
    • Fiscal year: 
      calendar year