TERM REPORT

(FRANCE)

MUHAMMAD HARIS
21981
 INTRODUCTION
France, officially French Republic, French France or République
Française, country of northwestern Europe. Historically and culturally
among the most important nations in the Western world, France has
also played a highly significant role in international affairs, with former
colonies in every corner of the globe. Bounded by the Atlantic
Ocean and the Mediterranean Sea, the Alps and the Pyrenees, France
has long provided a geographic, economic, and linguistic bridge joining
northern and southern Europe. It is Europe’s most important
agricultural producer and one of the world’s leading industrial powers .

France is among the globe’s oldest nations, the product of an

alliance of duchies and principalities under a single ruler in
the middle Ages. Today, as in that era, central authority is
vested in the state, even though a measure of autonomy has
been granted to the country’s regions in recent decades. The
French people look to the state as the primary guardian of
liberty, and the state in turn provides a generous program of
amenities for its citizens, from free education to health care
and pension plans.

CAPITAL: PARIS
CURRENCY: EURO
France’s economy:-
France , officially the French Republic, is a country whose territory
consists of metropolitan France in Western Europe and several
overseas regions and territories.[XIII] The metropolitan area of France
extends from the Mediterranean Sea to the English Channel and
the North Sea, and from the Rhine to the Atlantic Ocean. It is bordered
by Belgium, Luxembourg and Germany to the
northeast, Switzerland and Italy to the east, and Andorra and Spain to
the south. The overseas territories include French Guiana in South
America and several islands in the Atlantic, Pacific and Indian oceans.
The country's 18 integral regions (five of which are situated overseas)
span a combined area of 643,801 square kilometres (248,573 sq mi)
and a total population of 67.02 million (as of July 2019). France is
a unitary semi-presidential republic with its capital in Paris, the
country's largest city and main cultural and commercial centre. Other
major urban
areas include Lyon, Marseille, Toulouse, Bordeaux, Lille and Nice.
France, including its overseas territories, has the most number of time
zones of any country, with a total of 12
Major Products:-
Spain is the 16th largest export economy in the world and the 28th
most complex economy according to the Economic Complexity Index
(ECI). In 2017, Spain exported $296B and imported $332B, resulting in
a negative trade balance of $35.7B. In 2017 the GDP of Spain was
$1.31T and its GDP per capita was $38k.

The top exports of Spain are Cars ($36.4B), Refined

Petroleum ($10.8B), Vehicle Parts ($10.2B), Packaged
Medicaments ($8.37B) and Delivery Trucks ($6.29B), using the 1992
revision of the HS (Harmonized System) classification. Its top imports
are Crude Petroleum ($23.2B), Cars ($20.1B), Vehicle
Parts ($15.9B), Packaged Medicaments ($9.5B) and Petroleum Gas
($7.82B).

The top export destinations of Spain are France

($40.5B), Germany ($33.9B), Portugal ($24.2B), Italy ($22.7B) and the
United Kingdom ($20.7B). The top import origins
are Germany ($43.5B), France ($37.6B), China ($28.6B), Italy ($23.3B)
and the United States ($14.9B).
Major Exports:-
France shipped US$568.4 billion worth of goods around the globe in
2018. That dollar metric reflects an 8.6% increase from 2017 to 2018
compared to a 0.8% improvement over the 5-year period starting in
2014.

Reported as of September 5, 2019, France exported $284.1 billion

worth of goods during the first 6 months of 2019 down -2.2% compared
to the same period one year earlier.

Given France’s population of 67.4 million people (including its five

overseas regions), its total $568.4 billion in 2018 exports translates to
roughly $8,400 for every resident in the Asian country.

At the more detailed Harmonized Tariff System code level, France’s

most valuable exported products are large airplanes followed by
therapeutic or prophylactic drugs and medicines then motor cars.

1. Machinery including computers: US$67.7 billion (11.9% of total

exports)
2. Vehicles: $56.5 billion (9.9%)
3. Aircraft, spacecraft: $51.8 billion (9.1%)
4. Electrical machinery, equipment: $44.9 billion (7.9%)
5. Pharmaceuticals: $33.8 billion (6%)
6. Plastics, plastic articles: $22.6 billion (4%)
7. Perfumes, cosmetics: $19.7 billion (3.5%)
8. Beverages, spirits, vinegar: $19.4 billion (3.4%)
9. Mineral fuels including oil: $18.7 billion (3.3%)
10.Optical, technical, medical apparatus: $16.9 billion (3%)
Major Imports:-
French imports totaled US$659 billion in 2018, down by -0.1% since
2014 but up by 7.5% from 2017 to 2018.

French imports represent 3.7% of total global imports which totaled an

estimated $17.778 trillion one year earlier during 2017 (as calculated
on January 21, 2019).

Given France’s population of 67.4 million people, its total $659 billion in
2018 imports translates to roughly $9,800 in yearly product demand
from every person in the European nation.

The following product groups represent the highest dollar value in

France’s import purchases during 2018. Also shown is the percentage
share each product category represents in terms of overall imports into
France.

1. Machinery including computers: US$83.7 billion (12.7% of total

imports)
2. Vehicles: $73.9 billion (11.2%)
3. Mineral fuels including oil: $73.7 billion (11.2%)
4. Electrical machinery, equipment: $58.1 billion (8.8%)
5. Plastics, plastic articles: $26 billion (3.9%)
6. Pharmaceuticals: $25.2 billion (3.8%)
7. Aircraft, spacecraft: $21.1 billion (3.2%)
8. Optical, technical, medical apparatus: $19.5 billion (3%)
9. Organic chemicals: $16.3 billion (2.5%)
10. Iron, steel: $13.9 billion (2.1%)
Currency:-
France is a member of the European Union and one of 23 countries in
the region that uses the euro (abbreviated €) as its national currency.
One euro is divided into 100 cents and there are seven notes in
circulation, available in denominations of €5, €10, €20, €50, €100, €200
(rare) and €500 (rare).There are also eight coins in circulation in
denominations of €1 and €2, then one, two, five, 10, 20 and 50 cents.

Euro Against USD:-

The EURUSD decreased 0.0013 or 0.12% to 1.1158 on Friday January 3
from 1.1171 in the previous trading session. Historically, the Euro Dollar
Exchange Rate - EUR/USD reached an all-time high of 1.87 in July of
1973.The euro was only introduced as a currency on the first of January
of 1999. However, synthetic historical prices going back much further
can be modeled if we consider a weighted average of the previous
currencies.
Population:-
The total population in France was estimated at 67.2 million people in
2018, according to the latest census figures. Looking back, in the year of
1960, France had a population of 45.5 million people.
Population in France is expected to be 67.33 Million by the end of this
quarter, according to Trading Economics global macro models and
analysts’ expectations. In the long-term, the France Population is
projected to trend around 67.60 Million in 2020, according to our
econometric models.
Employed Persons:-
The number of employed persons in France increased to 28437.90
Thousand in the third quarter of 2019 from 28376.60 Thousand in the
second quarter of 2019. Employed Persons in France averaged
23233.83 Thousand from 1950 until 2019, reaching an all-time high of
28437.90 Thousand in the third quarter of 2019 and a record low of
19522 Thousand in the first quarter of 1950.
Employment Rate:-
Employment Rate in France decreased to 65.20 percent in the third
quarter of 2019 from 65.50 percent in the second quarter of 2019.
Employment Rate in France averaged 63.86 percent from 2003 until
2019, reaching an all-time high of 65.50 percent in the fourth quarter of
2018 and a record low of 63 percent in the fourth quarter of 2005.
Employment Change:-
Employment in France increased by 0.2 percent from the previous
period in the third quarter of 2019. Employment Change in France
averaged 0.14 percent from 1975 until 2019, reaching an all-time high
of 0.70 percent in the second quarter of 1999 and a record low of -0.50
percent in the first quarter of 2009.
Employment Change in France is expected to be 0.40 percent by the
end of this quarter, according to Trading Economics global macro
models and analysts’ expectations. Looking forward, we estimate
Employment Change in France to stand at 0.30 in 12 months’ time. In
the long-term, the France Employment Change is projected to trend
around 0.30 percent in 2020, according to our econometric models.
Unemployed Persons:-
The number of people registered as out of work in mainland France
decreased by 27.8 thousand from the previous month to 3.303 million
in November 2019, the lowest level since November 2013.
Unemployment among people aged 25 to 49 dropped by 18.3 thousand
to 1.951 million, and that among young people declined by 5.3
thousand to 0.451 million. Also, unemployment among those aged 50
or more fell by 4.2 thousand to 0.901 million. Compared with the same
month of the previous year, registered jobless decreased by 106.8
thousand. Unemployed Persons in France averaged 2893.36 Thousand
from 1996 until 2019, reaching an all-time high of 3591.10 Thousand in
February of 2016 and a record low of 1975.80 Thousand in February of
2008.
Unemployment Rate:-
The unemployment rate in France inched higher to 8.6 percent in the
third quarter of 2019 from 8.5 percent in the previous period and
above market expectations of 8.4 percent. In metropolitan France only,
the unemployment rate edged up to 8.3 percent. Meantime, the
employment rate declined 0.1 points to 65.2 percent, while the activity
rate decreased 0.3 points to 71.3 percent. Unemployment Rate in
France averaged 9.24 percent from 1996 until 2019, reaching an all-
time high of 10.70 percent in the first quarter of 1997 and a record low
of 7.20 percent in the first quarter of 2008.
GDP:-
The Gross Domestic Product (GDP) in France was worth 2777.54 billion
US dollars in 2018. The GDP value of France represents 4.48 percent of
the world economy. GDP in France averaged 1203.80 USD Billion from
1960 until 2018, reaching an all-time high of 2918.38 USD Billion in
2008 and a record low of 62.65 USD Billion in 1960.
GDP Annual Growth Rate:-
The French economy expanded 1.4 percent year-on-year in the third
quarter, the same pace as in the previous three-month period. GDP
Annual Growth Rate in France averaged 3.15 percent from 1950 until
2019, reaching an all-time high of 12.60 percent in the second quarter
of 1969 and a record low of -3.80 percent in the first quarter of 2009.
GDP Per Capita:-
The Gross Domestic Product per capita in France was last recorded at
43663.60 US dollars in 2018. The GDP per Capita in France is equivalent
to 346 percent of the world's average. GDP per capita in France
averaged 30421.47 USD from 1960 until 2018, reaching an all-time high
of 43663.60 USD in 2018 and a record low of 13044.90 USD in 1960
GNP:-
France’s Gross National Product was reported at 2,839.874 USD bn
in Dec 2018. This records an increase from the previous number of
2,649.189 USD bn for Dec 2017. France’s Gross National Product
data is updated yearly, averaging 983.570 USD bn from Dec 1957
to 2018, with 62 observations. The data reached an all-time high of
2,979.103 USD bn in 2008 and a record low of 56.443 USD bn in
1959. France’s Gross National Product data remains active status in
CEIC and is reported by CEIC Data. The data is categorized under
World Trend Plus’s Global Economic Monitor – Table: Gross
National Product: USD: Annual: Europe and Central Asia. CEIC
converts annual Gross National Product into USD. French National
Institute for Statistics and Economic Studies provides Gross
National Product in EUR. Federal Reserve Board average market
exchange rate is used for currency conversions.
Consumer price Index (CPI):-
Consumer Price Index CPI in France increased to 104.97 points in
December from 104.52 points in November of 2019. Consumer Price
Index CPI in France averaged 86.96 points from 1990 until 2019,
reaching an all-time high of 104.97 points in December of 2019 and a
record low of 66.40 points in January of 1990.
Foreign Exchange Reserves:-
Foreign Exchange Reserves in France decreased to 174.71 EUR Billion in
November from 176.83 EUR Billion in October of 2019. Foreign
Exchange Reserves in France averaged 71.79 EUR Billion from 1972
until 2019, reaching an all-time high of 186.62 EUR Billion in January of
2012 and a record low of 5.29 EUR Billion in February of 1974.
Money Supply M1:-
Money Supply M1 in France increased to 1414493 EUR Million in
October from 1403744 EUR Million in September of 2019. Money
Supply M1 in France averaged 454809.57 EUR Million from 1977 until
2019, reaching an all-time high of 1414493 EUR Million in October of
2019 and a record low of 82375 EUR Million in February of 1978.
Money Supply M2:-
Money Supply M2 in France increased to 2304038 EUR Million in
October from 2299736 EUR Million in September of 2019. Money
Supply M2 in France averaged 916479.40 EUR Million from 1980 until
2019, reaching an all-time high of 2307332 EUR Million in August of
2019 and a record low of 263286 EUR Million in February of 1980.
Money Supply M3:-
Money Supply M3 in France increased to 2707163 EUR Million in
October from 2687155 EUR Million in September of 2019. Money
Supply M3 in France averaged 977778.04 EUR Million from 1970 until
2019, reaching an all-time high of 2710155 EUR Million in August of
2019 and a record low of 58303 EUR Million in February of 1970
Foreign Direct Investment:-
Foreign Direct Investment in France increased by 2368 EUR Million in
October of 2019. Foreign Direct Investment in France averaged 2853.35
EUR Million from 1993 until 2019, reaching an all-time high of 21742
EUR Million in October of 2018 and a record low of -7723 EUR Million in
July of 2014.
Government Spending:-
Government Spending in France increased to 137994 EUR Million in the
third quarter of 2019 from 137278 EUR Million in the second quarter of
2019. Government Spending in France averaged 74014.56 EUR Million
from 1949 until 2019, reaching an all time high of 137994 EUR Million in
the third quarter of 2019 and a record low of 16868 EUR Million in the
first quarter of 1949.
Government Budget Deficit:-
France recorded a Government Budget deficit equal to 2.50 percent of
the country's Gross Domestic Product in 2018. Government Budget in
France averaged -2.25 percent of GDP from 1959 until 2018, reaching
an all time high of 1.50 percent of GDP in 1959 and a record low of -
7.20 percent of GDP in 2009.
Corporate Tax Rate:-
The Corporate Tax Rate in France stands at 31 percent. Corporate Tax
Rate in France averaged 37.97 percent from 1981 until 2019, reaching
an all-time high of 50 percent in 1982 and a record low of 31 percent in
2019.
Personal Income Tax Rate:-
The Personal Income Tax Rate in France stands at 45 percent. Personal
Income Tax Rate in France averaged 48.63 percent from 1995 until
2019, reaching an all-time high of 59.60 percent in 1996 and a record
low of 40 percent in 2006.
Sales Tax Rate-VAT:-
The Sales Tax Rate in France stands at 20 percent. Sales Tax Rate in
France averaged 19.72 percent from 2000 until 2019, reaching an all
time high of 20 percent in 2014 and a record low of 19.60 percent in
2001.
Producer Prices:-
Industrial producer prices for products sold in the French market rose
1.1 percent in November 2019, after an upwardly revised 0.2 percent
drop in October while markets expected no change. Prices went up for
mining & quarrying products, energy and water (4.7 percent after being
unchanged in October) while those of manufactured products were
unchanged (from -0.2 percent). Year-on-year, producer prices
continued to decline (-0.8 percent from -1.3 percent). Producer Prices
in France averaged 100.66 points from 2015 until 2019, reaching an all-
time high of 104.40 points in November of 2018 and a record low of
96.50 points in April of 2016