France's Economy By The Numbers
What does France look like economically. 24/7 turned to the CIA Facebook, The World Bank, and IMF for answers
France is the world’s six largest economy in the world based on 2014 data from The World Bank, with a total of $2.92 trillion. That puts it close to the UK is at $2.82 trillion. It is the second largest economy behind Germany in Europe. Germany’s 2014 GDP was $3.85 trillion. The gulf between the two European nations is likely widening. Germany’s GDP has picked up its growth pace since the Great Recession. France’s has suffered.
On July 8, 2015, the Executive Board of the IMF finished it analysis of France. The report read:
A solid recovery is underway. The economy is expected to expand by 1.2 percent this year, supported by an accommodative external environment. Sharply lower oil prices, a depreciated euro, low interest rates on account of quantitative easing (QE), and the recovery in other euro area countries should underpin household consumption, lift export growth, and eventually foster a rebound in investment. Combined with a slowdown in fiscal consolidation, this should allow the output gap to narrow gradually, although unemployment is projected to decline only slowly. After falling to near zero, inflation is set to accelerate this year as euro depreciation and QE feed more fully into prices, and the effect of the oil price decline wears off. Short-term risks are evenly balanced, depending in part on the strength of the euro area recovery.
The 1.2% GDP expansion puts it well behind the growth rate of the world’s largest nations, with the exception of Japan.
The authors of the CIA World Factbook point out that France, like most of the world’s largest nations, is multi-legged stool, economically, which in theory, should help its recovery:
The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With more than 84 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France’s leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that mitigate economic inequality.
Whether tourism will remain strong in light of current events is anyone’s guess