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Economy of France

Presented to:
 Madam
Rana
Fareed
Presented by:
 Maira
Siddiqui
 Samreen
Shaikh
Introduction
 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.

 This program of dirigisme, mostly implemented by right-
wing 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.

 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.

 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.

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

 France is the world's sixth-largest
agricultural producer and the second-
largest 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.

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

 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.

 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).

 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.

 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.

 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.

 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, high-
technologies), Provence-
Alpes-Côtes d'Azur
(services, industries,
tourisms and wines), Nord-
Pas-de-Calais (industries)
and Pays de la Loire.

 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