The French Economy

1
The French Economy

• Rachel Waldera
• December 4, 2002

2
History

• 1789-1799 French Revolution
• Declaration of the Rights (August 26, 1789)
• Abolition of the monarchy (1792)
• 1958-1968 Constitution of the Fifth Republic
  adopted by referendum (September 28, 1958)
• Introduction of the common market (1959)
• Economic growth. Social crisis (May 1968)

3
Background Information

• European nation leader and one of the most modern
  countries in the world
• Presidential democracy since 1958
• Many large companies/banks privatized but
  Socialist led government still has large control
  (Air France, France Telecom, public transport,
  defense industries)

4

• Natural Resources
• Coal, iron ore, bauxite, zinc, potash, timber,
  fish
• Industries
• Machinery, chemicals, automobiles, metallurgy,
  aircraft, electronics, tourism

5

• Area- 547,030 sq km
• 33 arable land
• 2 permanent crops
• 65 other
• Irrigated land- 20,000 sq km
• GDP by sector
• Agriculture 3.3
• Industry 25.7
• Services 71
• Labor Force
• 26.6 million
• 71- Services
• 25- Industry
• 4- Agriculture

6
Economic Goals

• Maintain social equity (laws, tax policies,
  social spending)
• Reduce income inequality

7
Current Government

• Lowered income taxes (to reduce unemployment, 8.9
  in 2001)
• Little reform on pension system, rigid labor
  market
• Reduction of work week (35 hours)

8
Statistics

• Population 59 million
• Birth Rate 11.94/1000
• Death Rate 9.04/1000
• Infant Mortality Rate 4.41(deaths)/1000(live
  births)
• Life Expectancy at birth 79.05 years
• Literacy 99 (age 15 that can read/write)

9
Population Comparison

• 1997 1998 1999 2000 2001
• Population France 58 58 59 59 59
• (millions) US 272 275 278 282 284
• Population France 0 0 0 0 0
• Growth US 1 1 1 1 1
• (annual )

10
Trade

• Exports
• 293.3 billion
• Machinery/transportation equipment, aircraft,
  plastics, chemicals pharmaceutical products,
  iron, steel, beverages
• EU- 61 (Germany 14, UK 10, Spain 9, Italy 9,
  Benelux 8), US- 9
• Exports of goods services
• 1997 26 ( of GDP)
• 2000 29 ( of GDP)

• Imports
• 292.6 billion
• Machinery/equipment, vehicles, crude oil,
  aircraft, plastics, chemicals
• EU- 63 (Germany 17, Benelux 10, Italy 9, UK
  8), US- 7
• Imports of goods services
• 1997 23 ( of GDP)
• 2000 27 ( of GDP)

11
Trade Comparison

• 1997 1998 1999 2000 2001
• FDI, net flows France 23 30 47 43 ..
• (billions) US 106 178 301 288 ..
• Exports France 26 26 26 29 ..
• ( of GDP) US 12 11 11 .. ..
• Imports France 23 23 24 27 ..
• ( of GDP) US 13 13 13 .. ..

12
Comparison of GDP between France and the US

• 1997 1998 1999 2000 2001
• GDP (billions) France 1,406 1,452 1,438
  1,294 1,303
• US 8,257 8,729 9,237 9,837 10,171
• GDP growth France 2 3 3 3 2
• (annual ) US 4 4 4 4 1
• GNI per capitaFrance 25,850 24,830 24,290
  23,810 22,690
• US 30,040 30,730 32,370 34,100 34,870

13
Budget

• Revenues 210 billion
• Expenditures 240 billion
• External Debt 106 billion

14
Current Situation

• January 1999- implemented the Euro
• Euros per US .9386 (1999), 1.1324 (Jan. 2002)
• Unified/capable European defense and security
  apparatus
• Transitioning from government ownership/interventi
  ons to reliance on market mechanisms

15

• Questions?