The economy of France is mostly dependent on the tourism sector.The country is known to be one of the most visited places on the planet. This fact has helped to turn France into a rich heritage of culture.When we look at an overview of the French economy, it’s important to remember that the country is mostly dependent on the sectors that maintain the tourism and trade for the nation. These sectors make the nation rich and prosperous. Another important factor of the French economy is the presence of dirigisme. Dirigism is basically an economic condition where the state interferes in economic activities to ensure development. Dirigism has been prominent in the country, ensuring development in terms of policies, subsidies, and pension reform. The state also has taken care of various projects and technological developments. The French government encourages the growth of various industries and public transportation systems. Although it did serve a purpose at the time, eventually dirigisme faced a failure in the French economy and many people have considered the excessive level of competition to be the end of dirigisme in France. The state gave rise to a lot of complexities due to strategic planning which disrupted the normal functioning of the economic activity.If you like reading this article, you might want to read about French flag facts and French education system facts. What does France export?The trading sector of France is very well developed and is one of the main reasons the nation is so wealthy. There are numerous french exports, ranging from meat and crops, to aircraft and even pharmaceuticals.The nation’s biggest trading partner is the European Union. After the union, the country trades with the United States and China. Within the union, Spain, Italy, and the United Kingdom also depend on France for multiple products. The GDP per capita of France has increased over the years due to the massive amount of export trading that takes place. The France economy data states that in 2019 the total valuation of the exports of France was estimated to be around $571.5 billion. In comparison, the value of imports into France was about $653.8 billion. The export products mostly included sugar, wheat, famous French wine, and beef. Other items included aircrafts, spacecraft, and helicopters. Different types of equipment, plastics, pharmaceutical products are also exported by France on a daily basis.What about French trade?France’s financial market is very dependent on trade. The major trading partner for France is the European Union, followed by the United States of America and then China.Before we discuss the trade culture of France, it’s important to understand the leading financial marketplaces in Europe that affect the trade in France. Euronext is the leading marketplace followed by London. London also falls under the International Financial Centres (IFC). After London, Madrid, Milan, and Paris are the leading sectors that not only help in the trade but to establish and maintain a general relationship with the trading partners. As we know, the European Union is the largest trade partner for France. This relationship of trading was created mainly through New France. The trading was mostly dependent on importing wool blankets, kettles to make furs. These furs are used in hats or other clothing which are in demand all around the globe. The country mostly imports cotton, iron tools, tobacco, and vegetable oil. These ingredients are used to make the export products. Major export products are beef, clothing materials, aircraft, aeronautical machinery, and pharmaceuticals.The Unemployment Rate in FranceThe unemployment rate basically measures the number of unemployed people in the percentage of the total number of the labor force. The labor force is actually a cumulative figure for the total number of employed as well as unemployed people.The unemployment rate decreased in France in 2019. In 2020 the unemployment rate increased to 8.62%. So far this year, the total number of unemployed people in France is estimated to be 2.4 million. Over the last quarter of 2020, the total number decreased by 16,000. During 2020 the rate of unemployment was quite stagnant but faced fluctuations towards the end. Although in 2021, the unemployment rate has dropped down to 8.0% after a year of instabilities in the labor market.What about France’s salary and pay scales?Like some other European nations, France currently imposes a minimum hourly wage of €9.67. This is the minimum wage the employer needs to pay their employees for an hour’s work.This minimum wage applies to all sectors, regardless of whether they are a government or private organisation. If a worker is working at the minimum wage, then the average monthly salary accumulates to be around €1,466.62. According to researches, the minimum wage is not enough to live comfortably in a major city such as Paris. To live a comfortable life in a city like Paris, around 33% of the total workforce said you would need to earn between €3000-4999 per month. Currently, the average salary for a full-time worker in France is around €2,340 a month.French Economy Compared To Other CountriesOut of all the European countries, the French economy can be called diversified, at least to some extent. France’s economy can vastly be classified into different sectors like tourism, production and manufacturing, and pharmaceuticals. Tourism is the major earner for the French economy due to the number of visitors it attracts each year. The country regularly welcomes visitors from all around the world.Other than tourism, a few key sectors can also be seen as functioning the nation economically. There are various companies that are concerned with France’s GDP growth in the global market. Most of the large companies are either completely privatized or partly. For the full privatized companies, even though the government does have many roles to play, they do maintain a firm and strong existence. The government companies are mostly concerned with the power connection throughout the city, as well as the transportation for the public. Moreover, the financial sector is largely dependent on the government. Combining both the governmental and the private sectors, there has been a frail economic growth in France in the year 2020. So, according to researchers, there has been around 0.4% expansion in the economy which will continue until 2022. Currently in 2021, there has been an increase of around 0.1% from earlier months. If the economy expands at the same rate, it’s expected to grow up to 2.1% in the year 2023 based on the current situation. Considering these percentages, France is currently the third-largest economy in Europe after Germany and UK. On the world average, France stands at the seventh position with a nominal GDP of around $2.71 trillion. The per capita income of France stands in 19th position with a value of around $42,877.56. 28.Other Interesting France Economy FactsFrance is the second most important country in Western Europe for investments. Investors all around the world look to grow their capital by investing in businesses in France. As well as growth opportunities, Île de France also offers a number of reasons, including economic stability, for investors.France has approximately 944,000 businesses flourishing across the country, generating a revenue of around 4.6% of the country’s GDP. With 12 million people, France is the biggest urban area in Europe. Paris offers 225 flights flying back and forth every day making communication very easy. Euronext, being the leading marketplace, covers France and is an important center for stock exchange which attracts foreign investors, which can help to make an economy stable.In terms of real estate, Paris is the largest commercial real estate portfolio in France and is known to be more affordable to buy than Berlin and London. France also provides around 155,000 researchers to research and promote various R&D sectors. Having one of the best universities, France attracts students from abroad. Finally, the country is building 70,000 homes to make it more approachable and affordable. Ile de France has a lot to offer for investors and a strong economy.Here at Kidadl, we have carefully created lots of interesting family-friendly facts for everyone to enjoy! If you liked our French economy facts, why not take a look at New York economy facts or Brazil economy facts?
The economy of France is mostly dependent on the tourism sector.
