The economy of France All you need to know about it ?

-

How is France’s economy? France’s economy incorporates a total free business of about 2.5 million registered companies. The government retains major influence over the main segments of the infrastructure sector, owning the majority of the railway, electricity, aircraft and communications companies. The government is slowly liquidating telecom sectors in France, Air France, insurance, banking and defense industries.

Although the production rate is higher than the United States, France’s GDP per capita is lower than the US GDP per capita.

France's economy
France’s economy

In fact, in 2003, 41.5% of the population of France worked, compared with 50.7% in the United States and 47.3% in the UK.

About 10% of the population is unemployed; students delay their entry into the labor market whenever possible; and the French government gives various incentives to workers to retire in their early fifties, although this is now receding.

Mineral wealth

France’s mineral wealth is diverse, but iron ore is the most important, and the field of Lorraine is its largest field, with reserves exceeding 2250 million tons, metal at 33%, phosphorus (1.7-1.9) and other iron ore fields with modest reserves.

Other minerals are also found in France, particularly potash, rock salt, uranium, zinc, tin and nickel.

Agriculture

France produced about 15 million tons of wheat in 1972, and production increased to 30,852 tons in 2003.

It is ranked fourth in the world by wheat production, which is cultivated in various French regions, but it is clearly found in northern areas where fertile soils, or where fertilizers are widely used.

As in the French Flanders, northern Alsace, and northern Brittany.

economy companies government
economy France’s economy

tourism

With more than 75 million foreign tourists in 2003, France is ranked as the world’s top tourist destination, ahead of Spain with 52.5 million and the United States with 40.4 million.

France has cities with a high cultural interest, beaches and spas, ski resorts and rural areas of beauty and tranquility.

Foreign Trade

French exports of wheat in 2002 amounted to 1367,841 tons, occupying third place in the world after the United States and Australia.

The production of maize was 1,898 thousand tons in 2003, ranking fifth among the countries of the world, and it is clear

Wheat production outweighs. Other cereals include oatmeal, animal feed, barley used in brewery, and potato cultivation.

Especially in the north, Brittany, Elazas and the Central Plateau. Their production is mainly for domestic consumption, and part of it is for export.

The three most important challenges facing the French economy:

1. Rising unemployment:

High persistent unemployment is a burden on the French economy because the social safety nets that must absorb the unemployed will grow and be supported by a smaller part of the population.

The continuing high unemployment of young people is particularly worrisome because it impairs the development of skills and the accumulation of wealth of the generation that must drive the economy in the coming decades.

Macaron plans to spend 15 billion euros on job training over the next five years and plans to increase sanctions against unemployed workers who are not looking for work by reforming unemployment benefits.

2. Inability:

 

France has seen a decline in its competitiveness. The country has had a current account deficit every year since 2006, which means that France imports more than exports. In 2014.

The payroll tax scheme was launched to help French companies be more competitive, but they still find it difficult to compete with German companies.

France’s current account deficit fell from 16.7 billion euros in 2016 to 13.1 billion euros in 2017.

Partly because health tourism revenues helped offset the energy bill of nations.

Many French companies can not find enough skilled workers to meet their demands, which hinders economic recovery.

Government reforms of apprenticeship and vocational training can help in this regard.

But where France is improving, FDI is happening.

While French companies are struggling to gain market share overseas.

Foreign companies are attracted to doing business in France, which has become more suitable for business since Macron took office.

In 2017, foreign direct investment in France was the highest level in 10 years, reaching 44 billion euros, an increase of 12 billion dollars since 2016.

3. Slow growth:

Economic growth in France is expected to fall from 2.3% to 1.7% in 2018.


The real GDP of France has been rising in recent years.

In 2017, France’s real GDP grew by 1.85%.

It was the government, which cut spending to meet EU deficit targets.

Targeting 2% growth for 2018, but high oil prices, a strong euro, and threats of a global trade war.

Political uncertainty in Europe is slowing the country’s growth. .

However, the positive prediction by the French National Statistics Agency is that the aviation and shipbuilding industries will support exports.

Families will benefit from salary and subsistence reductions, which may stimulate consumer spending.


know more:
  • Do not forget to join our channel on Telegram here
  • Open a trading account from here

Marowa Al Tujjar
Marowa Al Tujjar
مديرة القسم الصحفي - كاتبة و محررة إقتصادية متخصصة بالعملات الرقمية
BC XTB

Must Read

Bitcoin exception before FED meeting.

Bitcoin and FED decision; Tomorrow 31st of July 2019, Federal Reserve Bank will announce the monetary policy for the rest of the year. the...