Innovative land & property investments
Investment Property in France
Buying Guide
Economic Overview
Sixth largest world economy
France is officially ranked as the sixth largest economy in the world, and is a full member of the G8 organisation of the leading economic powers in the world.
It is one of the few modern economies to feature a large (though declining) proportion of companies which are state-owned or backed, combined with an extensive private enterprise, shown in the 2.5 million private companies registered.
Loosening of state power
Although the state is slowly relinquishing control of its business assets, such as France Telecom and Air France, this is a part of the economic structure of the country which is inherent and long-standing.
Other economic drivers controlled by the state include the railway network, electricity generation and aircraft manufacturing.
A productive nation
The GDP per capita of France stands at 29,600 USD per year, around 30% below the level of the US, though OECD figures show that it is the most productive of the G8 nations.
Other figures of interest show that France is the fourth-largest exporter and the fifth-largest importer of manufactured goods.
As of 2003, France is also the second biggest recipient of Foreign Direct Investment in the world, just behind Luxembourg at 47 billion USD.
Doing Business
Economists recognise the fact that the high productivity in France keeps it up with the other G8 nations, though point to the fact that reform of the structure of doing business, and making it easier to set up small businesses would help to develop the economy further.
Multi-national companies are less likely to set up offices in France until many of their other target markets are fulfilled.
The French culture is to resist the import of companies into the country, as this is often seen as taking money away from French businesses.
You only need to look at the struggles that a giant like McDonald's has faced by trying to come into towns and cites across France, and by not using local produce in their food.
Another important factor to consider here is that the red tape and administration process a foreign company has to go through in order to be able to trade in France.
Often, this is considered a real barrier to setting up a French satellite office.
Business areas
France's main business areas are Paris, Lyon, Marseille and Toulouse.
Much of the industrial plants and heavy production plants are located in the north east, with Lille as the regional capital.
Further hotspots for other industries are Sophia Antipolis in the hills behind the Cote d'Azur, which is where the high-technologies companies are based.
Strong social indicators
The national labour force of around 28 million people has an unemployment rate of around 9%, with France's renowned education system leaving 99% of the working population literate.
The extensive system of social security in France looks after those who can't find work, and only 6.6% of the population live below the poverty line.
Unemployment tends to have regional concentrations, with the deprived areas in the suburbs of major cities suffering the most. In areas to the north of Paris, for example, unemployment can run at 1.5 times higher than the rest of the country.
Electric self-sufficiency
France is in the happy position of being able to export some of the surplus electricity it produces, and is in fact the most energy-independent of the modern western economies.
This is due to heavy investment in the production of electricity through nuclear power plants.
In 2005 almost 87% of France's electrical production came from nuclear power stations.
Despite its detractors, this fact also makes France the lowest producer of carbon dioxide among the top seven industrialised nations in the world.
Key facts
- Sixth largest world economy
- Full G8 organisation member
- Annual GDP per capita of $29,600 - the most productive of the G8 nations
- Fourth-largest exporter, fifth-largest importer of manufactured goods and the world's second biggest recipient of Foreign Direct Investment
- The lowest carbon dioxide producer of the top seven industrialised nations
- The most energy-independent modern western economy
- An unemployment rate of around 9%
- Paris, Lyon, Marseille and Toulouse are the main business districts
- Heavy industry is concentrated in the north east around Lille
- The hills behind the Cote d'Azur are home to high-technologies companies
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