Economy Of France

Economy of France Presented to:  Madam

Rana Fareed

Presented by:  Maira

Siddiqui  Samreen Shaikh

Introduction 

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France is one of the largest economies in the world:, behind the United States, Japan, China and Germany. International Monetary Fund data rank the French economy eighth largest by purchasing power parity (PPP) in 2007. The World Bank, in 2008, estimated France's GDP in 2006 to be seventh largest in the world by PPP. Rankings published by the CIA World Fact book in 2008 determine France's GDP, to be the eighth

Dirigisme and decline of dirigisme Dirigisme (from the French) (in English also "dirigism") is an economic term designating an economy where the government exerts strong directive influence. 

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This program of dirigisme, mostly implemented by rightwing governments, involved the state control of a certain industries, such as transportation, energy and telecommunication infrastructures. However, dirigisme came to be highly contested after 1982 when governmental control increased in the economy, nationalizing many industries and private banks. By 1983 with the initial bad economic results the government decided to renounce dirigisme and start the era of rigueur ("rigor") or corporatization. As a result the government largely retreated from economic intervention; dirigisme has now essentially receded though some of its traits remain.

Dirigisme and decline of dirigisme Despite significant liberalization over the past 15 years, the government continues to play a significant role in the economy: government spending, at 53% of GDP in 2001, is the highest in the G-7.  Labor conditions and wages are highly regulated.  The government continues to own shares in corporations in a range of 

Poverty in France 

Poverty in France has fallen by 60% over thirty years. Although it affected 15% of the population in 1970, in 2001 only 6.1% were below the poverty line.

Bidonvilles 

Although poverty seems to have decreased overall, a form of extreme misery has reappeared in the 2000s.

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The media have attracted attention to bidonvilles (shanty towns-illegal or unauthorized), which were thought to have disappeared in the 1970s, with the transformation of Nanterre's bidonville into a modern city.

Sectors of the Economy - Industry Leading industrial sectors in France are telecommunications (including communication satellites), aerospace and defense, ship building (naval and specialist ships), pharmaceuticals, construction and civil engineering, chemicals, and automobile production.  Research and development spending is also high in France at 2.3% of GDP. 

Sectors of the Economy - Energy 

With no domestic oil production, France has relied heavily on the development of nuclear power, which now accounts for about 78% of the country's electricity production, up from only 8% in 1973, 24% in 1980, and 75% in 1990.

In 2006 the net production of electricity in France amounted to 548.8 TWh, of which:  (78.1%) were produced by nuclear power generation  (11.1%) by hydroelectric power generation  (9.5%) by fossil fuel power generation  6.9 TWh (1.3%) by other types of power generation (essentially waste-to-energy

Sectors of the Economy - Energy Nuclear power in France 

In France, as of 2002, Electricité de France (EDF) — the country's main electricity generation and Distribution Company— manages the country's 59 nuclear power plants.

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France is the world's largest net exporter of electric power, exporting 18% of its total production (about 100 TWh) to Italy, the Netherlands, Britain, and Germany, and its electricity cost is among the lowest in Europe.

Sectors of the Economy - Agriculture 

France is the European Union's leading agricultural producer, accounting for about one-third of all agricultural land within the EU.

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Northern France is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region.

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France is the world's sixth-largest agricultural producer and the secondlargest agricultural exporter, after the United States.

Sectors of the Economy - Agriculture 

The destination of 70% of its exports is other EU member states and many poor African countries which face serious food shortage.

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The French agricultural sector is heavily dependent upon subsidies from the European Union, which account for €11 billion.

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France is the main country in the EU that is against the reduction of subsidies. Subsidies have given France a competitive advantage which also demotes the concept of free trade.

Sectors of the Economy - Tourism 

As France is the most visited country in the world with over 75 million visitors a year, tourism is a significant contributor to the French Economy.

Sectors of the Economy - Weapons Industry 

France is the third largest weapons supplier in the world.

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In addition, external demand plays a big part in the growth of this sector: for example, France exports great quantities of weaponry to the United Arab Emirates, Greece, India, Pakistan, Taiwan, Singapore and many others.

Sectors of the Economy - External Trade 

France is the third-largest trading nation in Western Europe (after Germany and the United Kingdom).

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Its foreign trade balance for goods had been in surplus from 1992 until 2001, reaching $25.4 billion in 1998; however, the French balance of trade was hit by the economic downturn, and went into the red in 2000, reaching US$15bn in deficit in 2003.

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Trade with European Union countries accounts for 60% of French trade.

Sectors of the Economy - External Trade 

In 1998, U.S.-France trade totaled about $47 billion--goods only.

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U.S. industrial chemicals, aircraft and engines, electronic components, telecommunications, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, broadcasting equipment, and franchising are particularly attractive to French importers.

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Principal French exports to the United States are aircraft and engines, beverages, electrical equipment, chemicals, cosmetics, luxury products and perfume. France is the ninth-largest trading

Sectors of the Economy - Regions Economy 

The most powerful regions are Ile-de-France (4th agglomerations for her economy in the world), Rhônes-Alpes (industries, services, hightechnologies), ProvenceAlpes-Côtes d'Azur (services, industries, tourisms and wines), NordPas-de-Calais (industries) and Pays de la Loire.

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The rural area are mainly in Auvergne, Limousin, and Centre, and wines productions account for a significant amount of the economy in Aquitaine (Bordeaux region), and champagne for