France economic overview
Diverse economic structure:
France's economy—one of the world's largest—has a mixed structure, with a significant presence of both private and state-owned enterprises. Key sectors include manufacturing, particularly in automation, aerospace and luxury goods, services—notably in tourism and finance—and a robust agricultural sector, renowned for wine and dairy products.
Growing financial role:
Paris is one of the key financial centers in Europe—a role which has been strengthened since Brexit as some financial activity formerly in London shifted to Paris. Banks have reportedly relocated over 5000 employees from London to Paris since the UK left the EU.
A key EU player:
France is a founding member of the eurozone and has adopted the euro as its currency. The country is one of the leading voices in shaping EU policy, with the France-Germany political axis the bloc's most important driving force. President Macron—in office since 2017—has advocated closer EU integration and strategic independence from foreign powers. More recently, Macron has thrown his weight behind the idea of EU enlargement into southern and eastern Europe.
Liberalizing reforms:
Under President Macron, the French economy has been liberalized, with the labor market made less rigid, taxes cut, and unemployment insurance revamped. These measures have coincided with an acceleration in investment and the unemployment rate falling to an over-decade low in recent years. However, the changes have also provoked a backlash among large sectors of the population and generated significant social unrest. Some of the most high-profile protests were the "Yellow Vest" movement in 2018 and 2019, and the strikes over pension reform in 2023. Moreover, this wave of liberalization appeared to reach an end after Macron's party lost dozens of seats in parliament in the July 2024 snap elections.
Multiple domestic challenges:
The public debt ratio is among the highest in the EU at well over 100% of GDP, posing a risk to fiscal stability. Moreover, public resistance to structural reforms is high, often resulting in widespread protests that hamper economic activity. Additionally, regional disparities in economic development and integration of immigrant populations into the labor market remain ongoing challenges.
France's economic outlook:
Our forecasts for the French economy are underwhelming, especially given the country's strong demographics and business-friendly reforms in recent years. The Consensus among our panelists is for GDP growth to merely track the Euro area average over our forecast horizon.
France's economy in numbers:
Nominal GDP of USD 2,773 billion in 2022.
GDP per capita of USD 42,244 compared to the global average of USD 10,589.
Average real GDP growth of 1% over the last decade.
Share of the region's population
Share of the region's GDP
Economic structure:
In 2021, services accounted for 82% of overall GDP, manufacturing 9%, other industrial activity 7%, and agriculture 2%. Looking at GDP by expenditure, private consumption accounted for 52% of GDP in 2021, government consumption 24%, fixed investment 25%, and net exports -1%.
GDP by economic sector
GDP by type of expenditure
International trade:
In 2021, manufactured products made up 76% of total merchandise exports, mineral fuels 3%, food 14%, ores and metals 3% and agricultural raw materials 1%, with other categories accounting for 3% of the total. In the same period, manufactured products made up 74% of total merchandise imports, mineral fuels 10%, food 10%, ores and metals 3% and agricultural raw materials 1%, with other goods accounting for 2% of the total. Total exports were worth USD 669 billion in 2022, while total imports were USD 813 billion.
Key exports
Key imports
Key export partners
Key import partners
Economic growth:
The economy recorded average annual growth of 1.0% in the decade to 2022. To read more about GDP growth in France, go to our dedicated page.
Fiscal policy:
France's fiscal deficit averaged 4.4% of GDP in the decade to 2022. Find out more on our dedicated page.
Unemployment:
The unemployment rate averaged 9.2% in the decade to 2022. For more information on France's unemployment click here.
Inflation:
Inflation averaged 1.6% in the decade to 2022. Go to our France inflation page for extra insight.
Monetary Policy:
Euro Area monetary policy rate ended 2022 at 2.50%, up from 0.75% a decade earlier. See our France monetary policy page for additional details.
Exchange Rate:
From end-2012 to end-2022 the euro weakened by 18.2% vs the U.S. dollar. For more info on the euro, click here.
The economy decelerated slightly in sequential terms in Q1 due to slower private spending growth outweighing stronger increases in exports and public spending, as well as a softer fall in fixed investment. At 0.2%, growth was below the Euro area average—a trend panelists expect to have continued in Q2. Our Consensus is for slowdowns in exports and government spending and stronger readings for private spending and fixed investment in the second quarter relative to Q1. Available data is downbeat: Relative to Q1, in April–May, retail sales, industrial output and construction output were all lower. In politics, recent parliamentary elections led to the left-wing, centrist and right-wing blocs obtaining similar seat hauls. The most likely outcome is a center-left government, but government formation could take time, and future legislative progress will be stymied by the fragmented parliament.
Projections out to 2033.
53 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 54 expert analysts.
Want to get insight on the economic outlook for France in the coming years? FocusEconomics collects projections out to 2033 on 53 economic indicators for France from a panel of 54 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts'projections with timely written analysis from our in-house team of economists on the latest developments in the France economy.To download a sample report on the France's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.
