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Economy

Economic power

France is officially ranked as the world’s sixth largest economy, 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 state-owned or -backed companies, combined with extensive private enterprise: 2.5 million private companies are registered.

State control

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.

High productivity

France has a predominantly service-led economy; less than 25% of its GDP comes from agriculture or manufacturing, and it has a number of successful technology firms. GDP per capita in France stands at $31,200 per year (2006 estimate), with a real growth rate of 2.2% (2006 estimate). Other statistics show that France is the fourth largest exporter of goods and the third largest exporter of services in the world. Foreign direct investment inflows into France reached $86.9 billion in 2006.

Resistance to foreign companies

Multinational 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. In addition, the red tape and administration process a foreign company has to go through in order to be able to trade in France is extensive, and can prove off-putting.

Labour Force

The national labour force of around 28 million people has an unemployment rate of approximately 9%. 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.

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Documents and Reports

	France property investment report (447Kb)
	France property buying guide (1Mb)
	France country guide (991Kb)
Documents and Reports

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