Economy of France

France has a well-developed social market economy with the government involved in key industries. It is the world's seventh-largest economy by the amount of goods and services it produces. The service sector, like banking and tourism, is the biggest part of the economy. Industry and farming are smaller parts.

In 2024, France was the top place in Europe to receive investments from other countries and spent much on research and development. It is also one of the most innovative and competitive countries in the world. France is the most-visited place globally and leads in farming in the European Union.

Paris is a very important city for business. It has many large companies and creates a big part of France’s economy. Other important economic centers in France include Lyon, Toulouse, Marseille, and Lille. Even though France had hard economic times during the recession of the late 2000s, its growth has been steady in recent years.

History

Further information: Economic history of France

France has a strong economy, and the government helps in important areas. It is one of the largest economies in the world. The country is good at many kinds of work, especially services, which are the biggest part of its economy.

Corporations

Further information: List of companies of France

In 2020, France had the most companies from Europe on the list of the world's biggest 500 companies. It had 31, more than Germany with 27 and the UK with 22.

France also had the biggest share of important companies in the Eurozone. Some well-known French companies include Axa in insurance and Air France in air travel. France is strong in luxury goods, with L'Oreal being the biggest cosmetic company in the world, and LVMH and Kering being two big companies for luxury products. There are also big energy companies like GDF-Suez and EDF, and large construction firms such as Vinci SA.

In 2022, the most common types of companies in France were in finance, insurance, and real estate, followed by services and retail trade.

Rise and decline of dirigisme

France started a big plan to update its economy with help from the government. This plan, called dirigisme, happened mostly between 1944 and 1983. During this time, the government controlled important industries like transportation, energy, and telecommunications. They also encouraged private companies to join together.

In 1981, when François Mitterrand became president, the government tried to control the economy even more. They took over many industries and private banks. But by 1983, people began to criticize this idea. The government decided to stop dirigisme and focus on being more careful with money, called rigueur. Since then, the government has stayed out of the economy more, though it still has some control.

Today, the government still plays an important role in France’s economy. The government also owns parts of many companies in areas like energy, cars, airplanes, and weapons (arms industry).

Government finance

See also: Budget of France and Taxation in France

French Government borrowing (budget deficits) as a percentage of GNP, 1960–2009

French bonds 50 year 20 year 10 year 2 year 1 year 3 month

In 2012, France held a presidential election. The winner, François Hollande, wanted to balance the country's budget deficit by 2017. His government aimed to change tax rules for wealthy people, change the retirement age, and create jobs in schools.

Emmanuel Macron became president in 2017. He wanted to improve France's economy. In 2020, during the COVID-19 pandemic, France issued bonds with negative interest rates for the first time.

In 2020, France had the fourth-largest gold reserves in the world.

France's public debt from 1978 to 2009

In 2026, the Bank of France upgraded part of its gold reserves, selling old gold stored in New York and buying new bars for storage in Paris. This made a large profit due to high gold prices.

France has had a budget deficit each year since the 1970s. In 2024, France's bond yields went above those of Spain for the first time since 2007, raising concerns about managing public money. New leaders promised to focus on spending cuts to fix the problem.

Central bank and currency

National debt

Data

Change in per capita GDP of France, 1820–2018. Figures are inflation-adjusted to 2011 International dollars.

The table below shows the main economic numbers from 1980 to 2021 (with guesses from IMF for 2022–2027). Inflation under 5% is shown in green.

Year	GDP (in bn. US$PPP	GDP per capita (in US$PPP)	GDP (in bn. US$nominal)	GDP per capita (in US$ nominal)	GDP growth (real)	Inflation rate (% per annum)	Unemployment rate	Government debt (% of GDP)
1980	578.2	10,761.0	702.2	13,069.5	1.8%	13.1%	6.3%	20.8%
1981	639.7	11,839.6	619.0	11,456.0	1.1%	13.3%	7.4%	22.0%
1982	695.9	12,806.8	588.0	10,822.0	2.5%	12.0%	8.1%	25.4%
1983	732.2	13,397.2	562.5	10,292.8	1.3%	9.5%	7.4%	26.7%
1984	770.6	14,037.1	532.3	9,697.4	1.6%	7.7%	8.5%	29.1%
1985	808.6	14,660.1	557.6	10,108.6	1.7%	5.8%	8.7%	30.7%
1986	843.7	15,225.8	772.8	13,947.3	2.3%	2.5%	8.9%	31.3%
1987	886.8	15,926.7	935.1	16,794.0	2.6%	3.3%	9.2%	33.7%
1988	960.2	17,157.3	1,020.9	18,241.0	4.6%	2.7%	8.8%	33.6%
1989	1,043.1	18,536.6	1,026.2	18,236.8	4.5%	6.6%	8.7%	34.4%
1990	1,113.4	19,680.1	1,272.4	22,490.3	2.9%	0.3%	8.4%	35.6%
1991	1,163.6	20,471.7	1,273.6	22,406.4	1.1%	3.4%	8.6%	36.5%
1992	1,207.9	21,150.8	1,404.4	24,590.7	1.5%	2.5%	9.4%	40.2%
1993	1,228.1	21,407.8	1,324.2	23,082.7	-0.7%	2.2%	10.3%	46.6%
1994	1,284.0	22,305.4	1,396.7	24,262.2	2.4%	1.7%	10.7%	49.9%
1995	1,340.6	23,212.9	1,602.1	27,741.3	2.3%	1.8%	10.5%	56.1%
1996	1,383.6	23,882.3	1,606.0	27,720.9	1.4%	2.1%	10.8%	60.0%
1997	1,440.4	24,784.8	1,454.6	25,028.5	2.3%	1.3%	10.9%	61.4%
1998	1,509.1	25,884.7	1,505.2	25,818.4	3.6%	0.7%	10.7%	61.4%
1999	1,580.7	27,021.4	1,494.6	25,550.8	3.3%	0.6%	10.4%	60.5%
2000	1,683.0	28,594.2	1,366.2	23,212.5	4.1%	1.8%	9.2%	58.9%
2001	1,754.2	29,598.8	1,377.7	23,245.3	1.9%	1.8%	8.5%	58.3%
2002	1,802.5	30,199.5	1,500.3	25,137.4	1.2%	1.9%	8.3%	60.3%
2003	1,853.5	30,840.1	1,844.1	30,682.6	0.8%	2.2%	8.5%	64.4%
2004	1,951.9	32,260.2	2,118.7	35,016.2	2.6%	2.3%	8.9%	65.9%
2005	2,048.0	33,594.5	2,198.2	36,057.1	1.7%	1.9%	8.9%	67.4%
2006	2,167.0	35,292.8	2,320.7	37,795.9	2.6%	1.9%	8.9%	64.6%
2007	2,278.5	36,871.8	2,660.9	43,060.0	2.4%	1.6%	8.0%	64.5%
2008	2,325.8	37,432.1	2,930.0	47,155.2	0.2%	3.2%	7.4%	68.8%
2009	2,275.5	36,428.3	2,698.0	43,191.0	-2.8%	0.1%	9.1%	83.0%
2010	2,344.8	37,358.4	2,647.3	42,178.6	1.8%	1.7%	9.3%	85.3%
2011	2,446.5	38,789.6	2,864.7	45,420.0	2.2%	2.3%	9.2%	87.8%
2012	2,474.0	39,037.0	2,685.4	42,372.1	0.4%	2.2%	9.8%	90.6%
2013	2,608.5	40,951.5	2,811.9	44,144.6	0.7%	1.0%	10.3%	93.4%
2014	2,662.0	41,576.1	2,856.7	44,616.5	1.0%	0.6%	10.3%	94.9%
2015	2,719.2	42,289.1	2,439.4	37,937.9	1.1%	0.1%	10.4%	95.6%
2016	2,863.8	44,421.7	2,472.3	38,348.5	1.0%	0.3%	10.1%	98.0%
2017	2,997.3	46,369.7	2,594.2	40,134.1	2.4%	1.2%	9.4%	98.1%
2018	3,124.8	48,190.0	2,792.2	43,060.6	1.8%	2.1%	9.0%	97.8%
2019	3,240.6	49,782.0	2,729.2	41,924.8	1.9%	1.3%	8.4%	97.4%
2020	3,020.5	46,267.4	2,636.0	40,377.5	-7.9%	0.5%	8.0%	114.7%
2021	3,358.9	51,322.3	2,957.4	45,187.8	6.8%	2.1%	7.9%	112.6%
2022	3,688.3	56,199.9	2,778.1	42,330.5	2.5%	5.8%	7.5%	111.8%
2023	3,844.9	58,420.6	2,806.7	42,646.0	0.7%	4.6%	7.6%	112.5%
2024	3,986.7	60,406.6	2,932.4	44,431.0	1.6%	2.4%	7.5%	113.5%
2025	4,134.5	62,469.8	3,057.2	46,193.3	1.8%	1.8%	7.5%	114.9%
2026	4,282.9	64,531.7	3,179.5	47,906.1	1.7%	1.6%	7.4%	116.5%
2027	4,428.6	66,540.8	3,299.7	49,579.1	1.4%	1.6%	7.4%	118.5%

Economic sectors

Industry

In 2019, France was the world's 8th largest manufacturer in terms of value added, according to the World Bank.

The leading industrial sectors in France are telecommunications, aerospace and defence, ship building, pharmaceuticals, construction, chemicals, textiles, and automobile production. The chemical industry is important, helping to develop other manufacturing and contributing to economic growth.

Research and development spending is high in France.

Industry helps France's exports. France exports planes, cars, medicines, vehicle parts, and gas turbines.

In December 2023, industrial production in France increased notably.

Energy

Main article: Energy in France

2021 electricity production of France

Nuclear power (68.4%)
Renewable energy (22.5%)
Fossil fuel power (8.60%)
Other (0.50%)

A Peugeot 508 SW

France is a leader in nuclear energy. Nuclear power is a big part of the country's electricity. Due to this, France creates less carbon dioxide than many other countries.

In 2006, electricity generated in France amounted to 548.8 TWh.

In November 2004, EDF, France's largest electricity provider, was successful on the French stock market. Other electricity providers include Compagnie nationale du Rhône (CNR) and Endesa (through SNET).

Agriculture

France is the EU's leading agricultural power. France produces wheat, barley, and maize.

France is a large producer of many farm products. The Common Agricultural Policy and the Uruguay Round of the General Agreement on Tariffs and Trade have resulted in changes in the agricultural sector.

As the world's second-largest agricultural exporter, France sells many products to other EU members states and to poor African countries.

The French agricultural sector gets support from the EU. France produces many products like sugar beet, wheat, maize, barley, potato, grape, rapeseed, sugarcane, apple, triticale, sunflower seed, tomatoes, linen, pea, carrot, oats, soy, and more.

Mining

Main article: Mining in France

Tourism

Main article: Tourism in France

France is the world's most popular tourist destination. Popular sites include the Eiffel Tower, Louvre Museum, Palace of Versailles, and Disneyland Paris.

Arms industry

The French government buys many weapons for the country.

During the 2000–2015 period, France was a large weapons exporter in the world.

Banking and finance

Fresh vegetables displayed for sale at an outdoor market in France.

Main articles: List of banks in France and Euronext Paris

Fashion and luxury goods

Main article: French fashion

Louis Vuitton Moet Hennessey (LVMH) is the largest luxury company in the world by sales. France also has other top luxury companies.

Paris is considered one of the world's foremost fashion capitals.

Housing and real estate

Education

Main article: Education in France

Education in France is organised in a centralised way. It has primary, secondary, and higher education.

Pupils can take apprenticeships to enter the labour market with the Baccalauréat Technologique.

Higher education in France was reshaped by the student revolts of May 1968.

Eighteen million pupils and students are in the education system, over 2.4 million of whom are in higher education.

A wheat field in Villiers-le-Bâcle. France is the EU's largest agricultural producer.

Transportation in France has many roads and rail lines. The rail transport network includes high-speed TGV trains.

Charles de Gaulle Airport is one of the busiest airports in the world.

France has many seaports and harbours. The national carrier of France is Air France.

Water supply and sanitation

Main article: Water supply and sanitation in France

Foreign investment

France was the top place in Europe to get foreign investment in 2020. This was because of changes in laws and taxes by President Macron that investors liked.

France moved up two places to 5th in the 2019 AT Kearney FDI Confidence Index.

Labour market

France has a strong economy, but it has had trouble keeping many people employed. In 2020, only about 64 out of every 100 people aged 15 to 64 had jobs. This is lower than in places like Japan or Germany.

Since 2017, President Emmanuel Macron made changes to help lower unemployment. Before the COVID-19 recession, these changes helped bring the unemployment rate down to its lowest point in ten years. Some economists think that high minimum wages make it hard for young people to find their first jobs.

External trade

In 2018, France was the 5th largest trading nation in the world. Most of France's trade was with other European Union countries.

France and the United States also traded a lot. The U.S. sent things like chemicals and airplanes to France. France sent things like airplanes and drinks to the U.S.

Regional economy

Main article: List of French regions and overseas collectivities by GDP

France's different areas have similar economies. The area around Paris, called Île-de-France, is very wealthy because Paris is the capital city.

Some important areas include Île-de-France, Rhône-Alpes (known for services, technology, and tourism), Provence-Alpes-Côte d'Azur (services and tourism), Nord-Pas-de-Calais (a major transport center), and Pays de la Loire (known for green technology). Other areas like Alsace are also wealthy, with a focus on services.

Rural areas are found in Auvergne and Centre-Val de Loire. Wine production is important in Aquitaine (including Bordeaux (or claret)), Burgundy, and champagne made in Champagne-Ardennes.

Rank	Region	GDP (millions of euros, 2023)	GDP per capita (euros, 2023)
1	Île de France	860,067	69,287
2	Auvergne-Rhône-Alpes	328,611	40,017
3	Nouvelle-Aquitaine	213,662	34,814
4	Occitanie	213,320	34,844
5	Hauts-de-France	196,683	32,789
6	Provence-Alpes-Côte d'Azur	196,217	37,849
7	Grand Est	189,105	33,912
8	Pays de la Loire	143,617	36,732
9	Brittany	119,169	34,645
10	Normandy	115,942	34,784
11	Bourgogne-Franche-Comté	91,409	32,652
12	Centre-Val de Loire	89,893	34,872
	Réunion	23,165	26,249
	Guadeloupe	11,225	27,325
13	Corsica	10,710	30,288
	Martinique	10,138	28,630
	French Guiana	5,195	17,700
	Mayotte	3,326	11,485

Departments economy and cities

Poverty

Main article: Poverty in France

In 2021, about 8.4% of people in France lived in poverty. This is less than in some other countries, like the United States. Some areas in France, especially parts of Marseille, have bigger differences between rich and poor neighborhoods. Foreign workers sometimes had harder and lower-paying jobs and lived in poorer conditions.

Wealth

Overview

In 2010, the people of France had a lot of money — about US$14.0 trillion for a population of 63 million.

The French are among the wealthiest people in Europe. France ranks fourth in wealth in the world.
In 2010, the wealth each French adult had was a little more than $290,000. Almost every French household owns at least $1,000. There are many more French people with over $10,000 and even more with over $100,000 compared to the world average.

Millionaires

France has many millionaires — the third-highest number in Europe as of 2017. There were 1.617 million households with a million dollars or more in France that year.

The wealthiest man in France is the LVMH CEO and owner Bernard Arnault.

By 2022, the total wealth of France's 500 richest people was worth 1,170 billion euros. In 2009, that number was just 194 billion euros.