French architecture in France

France Economy

France economic overview

Diverse economic structure:

France's economy—one of the world's largest—has a mixed structure, with a significant presence of both private and state-owned enterprises. Key sectors include manufacturing, particularly in automation, aerospace and luxury goods, services—notably in tourism and finance—and a robust agricultural sector, renowned for wine and dairy products.

Growing financial role:

Paris is one of the key financial centers in Europe—a role which has been strengthened since Brexit as some financial activity formerly in London shifted to Paris. Banks have reportedly relocated over 5000 employees from London to Paris since the UK left the EU.

A key EU player:

France is a founding member of the eurozone and has adopted the euro as its currency. The country is one of the leading voices in shaping EU policy, with the France-Germany political axis the bloc's most important driving force. President Macron—in office since 2017—has advocated closer EU integration and strategic independence from foreign powers. More recently, Macron has thrown his weight behind the idea of EU enlargement into southern and eastern Europe.

Liberalizing reforms:

Under President Macron, the French economy has been liberalized, with the labor market made less rigid, taxes cut, and unemployment insurance revamped. These measures have coincided with an acceleration in investment and the unemployment rate falling to an over-decade low in recent years. However, the changes have also provoked a backlash among large sectors of the population and generated significant social unrest. Some of the most high-profile protests were the "Yellow Vest" movement in 2018 and 2019, and the strikes over pension reform in 2023. Moreover, this wave of liberalization appeared to reach an end after Macron's party lost dozens of seats in parliament in the July 2024 snap elections.

Multiple domestic challenges:

The public debt ratio is among the highest in the EU at well over 100% of GDP, posing a risk to fiscal stability. Moreover, public resistance to structural reforms is high, often resulting in widespread protests that hamper economic activity. Additionally, regional disparities in economic development and integration of immigrant populations into the labor market remain ongoing challenges.

France's economic outlook:

Our forecasts for the French economy are underwhelming, especially given the country's strong demographics and business-friendly reforms in recent years. The Consensus among our panelists is for GDP growth to merely track the Euro area average over our forecast horizon.

France's economy in numbers:

Nominal GDP of USD 3,056 billion in 2023.

Nominal GDP of USD 2,773 billion in 2022.

GDP per capita of USD 42,244 compared to the global average of USD 10,589.

GDP per capita of USD 46,365 compared to the global average of USD 10,589.

Average real GDP growth of 1.1% over the last decade.

Average real GDP growth of 1% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 82% of overall GDP, manufacturing 9%, other industrial activity 7%, and agriculture 2%. Looking at GDP by expenditure, private consumption accounted for 52% of GDP in 2021, government consumption 24%, fixed investment 25%, and net exports -1%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 76% of total merchandise exports, mineral fuels 3%, food 14%, ores and metals 3% and agricultural raw materials 1%, with other categories accounting for 3% of the total. In the same period, manufactured products made up 74% of total merchandise imports, mineral fuels 10%, food 10%, ores and metals 3% and agricultural raw materials 1%, with other goods accounting for 2% of the total. Total exports were worth USD 669 billion in 2022, while total imports were USD 813 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

France's GDP growth over the last decade was modest, reflecting broader European economic trends, though the Macron government introduced some liberalizing economic reforms. The economy experienced a sharp downturn due to the COVID-19 pandemic but saw a recovery in 2021-2023, supported by government stimulus and improved consumer spending. To read more about GDP growth in France, go to our dedicated page.

Fiscal policy:

France's fiscal deficit fluctuated over the last decade. Efforts to reduce the deficit through spending cuts and tax reforms were partly successful in the years before the pandemic. However, the deficit then widened due to social handouts to quell unrest, a stalled economic reform agenda and the pandemic. In 2023, France's budget deficit was among the largest in the Euro area. Find out more on our dedicated page.

Unemployment:

France's unemployment rate over the last decade gradually decreased, reflecting the country's efforts to reform the labor market and stimulate job creation. The COVID-19 pandemic caused a temporary setback, but by 2022-2023, the unemployment rate was close to the lowest level since the late 2000s, indicating some progress in reforming France's labor market. For more information on France's unemployment click here.

Inflation:

France experienced generally low inflation before and during the COVID-19 pandemic, with rates mostly below 2%. There was a notable uptick in inflation post-pandemic due to supply constraints, a decline in gas supply and recovering demand. However, inflation in France peaked below that in the broader Euro area thanks to the country's large nuclear energy capacity and government measures to limit the pass-through from higher energy prices. Go to our France inflation page for extra insight.

Monetary Policy:

In France, monetary policy is determined by the European Central Bank (ECB). The European Central Bank (ECB) maintained historically low policy rates from 2013 to 2021, reflecting prolonged economic sluggishness and low inflation in the Euro area. By 2022 however, the focus had shifted towards normalizing policy in response to economic recovery and rising inflation, with policy rates hiked to an over decade high. See our France monetary policy page for additional details.

Exchange Rate:

France is part of the Euro area single currency bloc. The euro saw volatility over the last decade in response to changes in global risk sentiment, and relative interest rates in the U.S. vs Europe. That said, the euro has tended to depreciate vs the dollar, likely on higher safe-haven demand and the United States' economic outperformance relative to the Eurozone. For more info on the euro, click here.
Quarter-on-quarter GDP growth slowed to 0.2% in Q2 (Q1: 0.3% qoq s.a.) on weaker contributions from net trade and government spending. The economy should have picked up in Q3, though mainly due to revenues from Olympics TV rights and ticketing sales. Underlying GDP growth in the quarter was likely modest, held back by political uncertainty following recent elections that returned a fractured parliament. Looking at available data, both retail sales and industrial output accelerated in July–August vs Q2, though the PMI survey of private-sector firms slumped in September after the Olympics ended. In politics, newly appointed Prime Minister Barnier recently presented a 2025 budget containing EUR 60 billion of spending cuts and tax rises. Parliamentary support for the budget is in doubt; in any case, France is still set to have one of the Euro area’s highest fiscal deficits next year.
Projections out to 2034.

54 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 52 expert analysts.

Want to get insight on the economic outlook for France in the coming years? FocusEconomics collects projections out to 2034 on 54 economic indicators for France from a panel of 52 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the France economy. To download a sample report on the France's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

France Economic Data

2019 2020 2021 2022 2023
Population (million) 65.1 65.3 65.5 65.7 65.9
GDP (EUR bn) 2,435 2,317 2,506 2,654 2,826
GDP per capita (EUR) 37,406 35,501 38,250 40,382 42,872
Economic Growth (Nominal GDP, ann. var. %) 3.3 -4.8 8.1 5.9 6.5
Economic Growth (GDP, ann. var. %) 2.1 -7.6 6.8 2.6 1.1
Domestic Demand (ann. var. %) 2.0 -6.3 6.0 2.9 0.6
Private Consumption (ann. var. %) 1.7 -6.5 5.2 3.0 0.9
Government Consumption (ann. var. %) 1.1 -4.3 6.6 2.6 0.8
Fixed Investment (ann. var. %) 4.2 -6.2 9.6 0.1 0.7
Exports (G&S, ann. var. %) 2.2 -16.8 11.1 8.4 2.5
Imports (G&S, ann. var. %) 2.1 -12.6 8.0 9.1 0.7
Industrial Production (ann. var. %) 0.5 -10.8 5.3 0.1 0.7
Retail Sales (ann. var. %) 0.7 -3.4 4.9 -1.5 -2.3
Disposable Income (ann. var. %) 3.4 1.0 4.8 5.2 8.0
Unemployment (% of active population, eop) 8.2 7.9 7.4 7.1 7.5
Unemployment (% of active population, aop) 8.4 8.0 7.9 7.3 7.3
Fiscal Balance (% of GDP) -2.4 -8.9 -6.6 -4.7 -5.5
Public Debt (% of GDP) 98.1 114.8 112.7 111.2 109.9
Inflation (CPI, ann. var. %, eop) 1.5 0.0 2.8 5.9 3.7
Inflation (HICP, ann. var. %, eop) 1.6 0.0 3.4 6.7 4.1
Inflation (HICP, ann. var. %, aop) 1.3 0.5 2.1 5.9 5.7
Inflation (Core, ann. var. %, aop) 0.8 0.6 1.1 3.8 5.1
Inflation (PPI, ann. var. %, aop) 0.4 -2.2 9.3 25.5 4.5
ECB Refinancing Rate (%, eop) 0.00 0.00 0.00 2.50 4.50
ECB Overnight Deposit Rate (%, eop) -0.50 -0.50 -0.50 2.00 4.00
3-Month EURIBOR (%, eop) -0.38 -0.55 -0.57 2.13 3.91
10-Year Bond Yield (%, eop) 0.11 -0.36 0.20 3.10 2.55
Stock Market (var. of CAC 40 %) 26.4 -7.1 28.9 -9.5 16.5
Exchange Rate (USD per EUR, eop) 1.12 1.22 1.14 1.07 1.10
Exchange Rate (USD per EUR, aop) 1.12 1.14 1.18 1.05 1.08
Current Account Balance (EUR bn) 14.5 -47.6 6.9 -31.1 -28.1
Current Account Balance (% of GDP) 0.6 -2.1 0.3 -1.2 -1.0
Merchandise Trade Balance (EUR bn) -37 -52 -65 -133 -76
Foreign Direct Investment (EUR bn) 18.2 10.8 30.0 71.2 38.0

Frequently Asked Question about France's Economy

  1. What is France's main economic sector?

  2. The main economic sector in France is the services sector, which accounts for about two-thirds of GDP. This includes activities such as retail, tourism, financial services, and government spending. However, industry also plays an important role in the economy.

  3. What is the future of the French economy?

  4. The economy is expected to grow in 2023 and 2024, and inflation is expected to come down from its current high levels. The government is also taking steps to reform the economy, which could help to boost growth in the long term. However, there are also some risks to the outlook, such as the war in Ukraine and flare-ups of social unrest.

  5. What is the richest region of France?

  6. The ÃŽle-de-France region, encompassing Paris and its surrounding areas, is the richest region in France. It is the country's economic powerhouse, contributing significantly to the national GDP, largely due to its dense population, high concentration of corporate headquarters, financial services, and its status as a global cultural and tourist destination.

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