Economy - overview France is in the midst of transition, from a well-to-do modern economy that featured extensive government ownership and intervention to one that relies more on market mechanisms. The Socialist-led government has partially or fully privatized many large companies, banks, and insurers, but still retains large stakes in several leading firms, including Air France, France Telecom, Renault, and Thales, and remains dominant in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. The current government has lowered income taxes and introduced measures to boost employment, but has done little to reform an overly expensive pension system, rigid labor market, and restrictive bureaucracy that discourage hiring and make the tax burden one of the highest in Europe. In addition to the tax burden, the reduction of the workweek to 35 hours, which is to be extended to small firms in 2002, has drawn criticism for lowering the competitiveness of French businesses. The current economic slowdown has thrown the government's goal of balancing the budget by 2004 off track.

GDP purchasing power parity - $1.51 trillion (2001 est.)

GDP - real growth rate 2.1% (2001 est.)

GDP - per capita purchasing power parity - $25,400 (2001 est.)

GDP - composition by sector
agriculture: 3.3%
industry: 25.7%
services: 71% (2000)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 25.1% (1995)

Distribution of family income - Gini index 32.7 (1995)

Inflation rate (consumer prices) 1.7% (2001 est.)

Labor force 26.6 million (2001 est.)

Labor force - by occupation services 71%, industry 25%, agriculture 4% (1997)

Unemployment rate 8.9% (2001 est.)

Budget
revenues: $210 billion
expenditures: $240 billion, including capital expenditures of $NA (2000 est.)

Industries machinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourism

Industrial production growth rate 1.3% (2001)

Electricity - production 513.924 billion kWh (2000)

Electricity - production by source
fossil fuel: 9.55%
hydro: 12.98%
other: 0.73% (2000)
nuclear: 76.74%

Electricity - consumption 408.514 billion kWh (2000)

Electricity - exports 73.172 billion kWh (2000)

Electricity - imports 3.737 billion kWh (2000)

Agriculture - products wheat, cereals, sugar beets, potatoes, wine grapes; beef, dairy products; fish

Exports $293.3 billion (f.o.b., 2001)

Exports - commodities machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages

Exports - partners EU 61% (Germany 14%, UK 10%, Spain 9%, Italy 9%, Benelux 8%), US 9% (2000)

Imports $292.6 billion (f.o.b., 2001)

Imports - commodities machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals

Imports - partners EU 63% (Germany 17%, Benelux 10%, Italy 9%, UK 8%), US 7% (2000)

Debt - external $106 billion (1998)

Economic aid - donor ODA, $6.3 billion (1997)

Currency euro (EUR); French franc (FRF)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Currency code EUR; FRF

Exchange rates euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); French francs per US dollar - 5.65 (January 1999), 5.8995 (1998), 5.8367 (1997)

Fiscal year calendar year

NOTE: The information regarding France on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of France Economy 2002 information contained here. All suggestions for corrections of any errors about France Economy 2002 should be addressed to the CIA.