Economy of France

France has a highly developed social market economy with strong state participation in important industries. It is the world's seventh-largest economy by the amount of goods and services it produces and the ninth-largest when considering the value adjusted for differences in living costs. The service sector, such as banking and tourism, makes up most of the economy, while industry and farming play smaller roles.

In 2024, France was the largest place in Europe to receive investments from other countries and spent a lot 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 it leads in farming within the European Union.

Paris is a very important city for business and money. It has many big companies and creates a large part of France’s total economy. Other important economic centers in France include Lyon, Toulouse, Marseille, and Lille. Even though France faced tough 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 and well-developed economy where the government plays an important role in certain key areas. It is one of the biggest economies in the world, making up about 3% of all the world's economic activity. The country is good at many different 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, with 31 of them. This was more than Germany, which had 27, and the UK, which had 22.

France also had the biggest share of the Eurozone's important companies, making up over a third of all their total assets. 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 the two biggest 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 or work on special projects.

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.

Even today, the government still plays an important role in France’s economy. In 2014, government spending was 56% of the country’s total money made, which is one of the highest in Europe. The government also owns parts of many companies in areas like energy, cars, airplanes, and weapons (arms industry). This helps the government make sure important industries are managed well and don’t become controlled by just one company.

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, promised to eliminate the country's budget deficit by 2017. His government aimed to cancel tax cuts for wealthy people, restore the retirement age to 60, and create jobs in public education.

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

France has had a budget deficit each year since the 1970s. By 2021, government debt was 118.6% of the country's economy. In 2012, France's credit rating was lowered by agencies like Moody's, Standard & Poor's, and Fitch.

In 2024, France's bond yields went above those of Spain for the first time since 2007, raising concerns about managing public money. The country also faced a budget crisis, with the deficit possibly exceeding 6% of GDP. 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 following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is 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 (including communication satellites), aerospace and defence, ship building, pharmaceuticals, construction and civil engineering, chemicals, textiles, and automobile production. The chemical industry is a key sector for France, helping to develop other manufacturing activities and contributing to economic growth.

Research and development spending is also high in France at 2.26% of GDP, the fourth-highest in the OECD.

Industry contributes to French exports: as of 2018, the Observatory of Economic Complexity estimates that France's largest exports "are led by planes, helicopters, and spacecraft ($43.8 billion), cars ($26 billion), packaged medicaments ($25.7 billion), vehicle parts ($16.5 billion), and gas turbines ($14.4 billion)."

In December 2023, industrial production in France experienced its most significant change since May of the same year, with a notable increase of 1.1%.

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 the world-leading country in nuclear energy, home of global energy giants Areva, EDF and GDF Suez: nuclear power now accounts for about 78% of the country's electricity production, up from only 8% in 1973, 24% in 1980, and 75% in 1990. Nuclear waste is stored on site at reprocessing facilities. Due to its heavy investment in nuclear power, France is the smallest emitter of carbon dioxide among the seven most industrialised countries in the world. Due to its overwhelming reliance on nuclear power, renewable energies have seen relatively little growth compared to other Western countries.

In 2006, electricity generated in France amounted to 548.8 TWh, of which:

428.7 TWh (78.1%) were produced by nuclear power generation
60.9 TWh (11.1%) were produced by hydroelectric power generation
52.4 TWh (9.5%) were produced by fossil-fuel power generation
- 21.6 TWh (3.9%) by coal power
- 20.9 TWh (3.8%) by natural-gas power
- 9.9 TWh (1.8%) by other fossil fuel generation (fuel oil and gases by-products of industry such as blast furnace gases)
6.9 TWh (1.3%) were produced by other types of power generation (essentially waste-to-energy and wind turbines)
- The electricity produced by wind turbines increased from 0.596 TWh in 2004, to 0.963 TWh in 2005, and 2.15 TWh in 2006, but this still accounted only for 0.4% of the total production of electricity (as of 2006).

In November 2004, EDF (which stands for Electricité de France), one of the world's largest utility company and France's largest electricity provider, was floated with huge success on the French stock market. However, the French state still retains 70% of the capital. Other electricity providers include Compagnie nationale du Rhône (CNR) and Endesa (through SNET).

Agriculture

France is the world's sixth-largest agricultural producer and EU's leading agricultural power, accounting for about one-third of all agricultural land within the EU. In the early 1980s, France was the leading producer of the three principal grains of wheat, barley, and maize. Back in 1983, France produced around 24.8 million tonnes, ahead of the United Kingdom and West Germany, the next two largest wheat producers.

Northern France is characterised by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region. Beef production is located in central France, while the production of fruits, vegetables, and wine ranges from central to southern France. France is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the Common Agricultural Policy (CAP) and the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) have resulted in reforms in the agricultural sector of the economy.

As the world's second-largest agricultural exporter, France ranks just after the United States. The destination of 49% of its exports is other EU members states. France also provides agricultural exports to many poor African countries (including its former colonies) which face serious food shortages. Wheat, beef, pork, poultry, and dairy products are the principal exports.

Exports from the United States face stiff competition from domestic production, other EU member states, and third-world countries in France. US agricultural exports to France, totaling some $600 million annually, consist primarily of soybeans and soybean products, feeds and fodders, seafood, and consumer products, especially snack foods and nuts. French exports to the United States are much more high-value products such as its cheese, processed products and its wine.

The French agricultural sector receives almost €11 billion in EU subsidies. France produced in 2018 39.5 million tons of sugar beet (2nd largest producer in the world, just behind Russia), which serves to produce sugar and ethanol; 35.8 million tons of wheat (5th largest producer in the world); 12.6 million tons of maize (11th largest producer in the world); 11.2 million tons of barley (2nd largest producer in the world, only behind Russia); 7.8 million tons of potato (8th largest producer in the world); 6.2 million tons of grape (5th largest producer in the world); 4.9 million tons of rapeseed (4th largest producer in the world, behind Canada, China and India); 2.2 million tons of sugarcane; 1.7 million tons of apple (9th largest producer in the world); 1.3 million tons of triticale (4th largest producer in the world, only behind Poland, Germany and Belarus); 1.2 million tons of sunflower seed (9th largest producer in the world); 712 thousand tons of tomatoes; 660 thousand tons of linen; 615 thousand tons of dry pea; 535 thousand tons of carrot; 427 thousand tons of oats; 400 thousand tons of soy; in addition to smaller productions of other agricultural products.

Mining

Main article: Mining in France

Tourism

Main article: Tourism in France

France is the world's most popular tourist destination with more than 83.7 million foreign tourists in 2014, ahead of Spain (58.5 million in 2006) and the United States (51.1 million in 2006). This figure excludes people staying less than 24 hours in France, such as northern Europeans crossing France on their way to Spain or Italy during the summer.

According to figures from 2003, some popular tourist sites include (in visitors per year): Eiffel Tower (6.2 million), Louvre Museum (5.7 million), Palace of Versailles (2.8 million), Cité des Sciences et de l'Industrie (2.6 million), Musée d'Orsay (2.1 million), Arc de Triomphe (1.2 million), Centre Pompidou (1.2 million), Mont-Saint-Michel (1 million), Château de Chambord (711,000), Sainte-Chapelle (683,000), Château du Haut-Kœnigsbourg (549,000), Puy de Dôme (500,000), Musée Picasso (441,000), Carcassonne (362,000). However, the most popular site in France is Disneyland Paris, with 9.7 million visitors in 2017

Arms industry

The French government is the French arms industry's main customer, mainly buying warships, guns, nuclear weapons and equipment.

During the 2000–2015 period, France was the fourth largest weapons exporter in the world.

French manufacturers export great quantities of weaponry to Saudi Arabia, the United Arab Emirates, Brazil, Greece, India, Pakistan, Taiwan, Singapore and many others. It was reported that in 2015, French arms sales internationally amounted to 17.4 billion U.S. dollars, more than double the figure of 2014.

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

According to 2017 data compiled by Deloitte, Louis Vuitton Moet Hennessey (LVMH), a French brand, is the largest luxury company in the world by sales, selling more than twice the amount of its nearest competitor. Moreover, France also possesses 3 of the top 10 luxury goods companies by sales (LVMH, Kering SA, L'Oréal), more than any other country in the world.

Paris is considered one of the world's foremost fashion capitals, or even "the world's fashion capital". The French tradition for haute couture has been estimated to start as early as the era of Louis XIV, the Sun King.

Housing and real estate

Education

Main article: Education in France

Education in France is organised in a highly centralised manner, with many subdivisions. It is divided into the three stages of primary education (enseignement primaire), secondary education (enseignement secondaire), and higher education (enseignement supérieur). In French higher education, the following degrees are recognised by the Bologna Process (EU recognition): Licence and Licence Professionnelle (bachelor's degrees), and the comparably named Master and Doctorat degrees.

The Programme for International Student Assessment coordinated by the OECD currently ranks the overall knowledge and skills of French 15-year-olds as 26th in the world in reading literacy, mathematics, and science, near the OECD average of 493. France's performance in mathematics and science at the middle school level was ranked 23 in the 1995 Trends in International Math and Science Study.

The OECD also found that students in France reported greater concern about discipline and behaviour at school and in classrooms, much more than the rest of Europe. This was higher than all OECD countries. School principals reported higher staff and material shortage in France, higher than OECD averages. About 7% of French teachers believe the teaching profession is highly valued in France and in society. School principals noted regular acts of violence and bullying among their students, higher than averages. The time spent of teaching time spent on keeping classes in good order is one of the largest in France, among all OECD countries studied. France also has a high drop out rate.

Pupils can take apprenticeships to enter the labour market with the Baccalauréat Technologique. It allows pupils pursue short and technical studies (laboratory, design and applied arts, hotel and restaurant, management etc).

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

Higher education in France was reshaped by the student revolts of May 1968. During the 1960s, French public universities responded to a massive explosion in the number of students (280,000 in 1962–63 to 500,000 in 1967–68) by stuffing approximately one-third of their students into hastily developed campus annexes (roughly equivalent to American satellite campuses) which lacked decent amenities, resident professors, academic traditions, or the dignity of university status. This is why the French higher education economy performs poorly compared with other high-performing countries such as England or Australia. France also hosts various catholic universities recognised by the state, the largest one being Lille Catholic University, as well branch colleges of foreign universities. They include Baruch College, the University of London Institute in Paris, Parsons Paris School of Art and Design and the American University of Paris. Eighteen million pupils and students are in the education system, over 2.4 million of whom are in higher education.

Transportation in France relies on one of the densest networks in the world with 146 km of road and 6.2 km of rail lines per 100 km². It is built as a web with Paris at its centre. The highly subsidised rail transport network makes up a relatively small portion of travel, most of which is done by car. However, the high-speed TGV trains make up a large proportion of long-distance travel, partially because intercity buses were prevented from operating until 2015.

With 3,220 kilometers of high-speed train lines, France boast the 2nd most expansive network in the world, only after China. Charles de Gaulle Airport is one of the busiest airports in the world by passenger traffic. Charles de Gaulle airport is third globally in the number of destinations served, and first in the number of countries served with non-stop flights.

France also boasts a number of seaports and harbours, including Bayonne, Bordeaux, Boulogne-sur-Mer, Brest, Calais, Cherbourg-Octeville, Dunkerque, Fos-sur-Mer, La Pallice, Le Havre, Lorient, Marseille, Nantes, Nice, Paris, Port-la-Nouvelle, Port-Vendres, Roscoff, Rouen, Saint-Nazaire, Saint-Malo, Sète, Strasbourg and Toulon. There are approximately 470 airports in France and by a 2005 estimate, there are three heliports. 288 of the airports have paved runways, with the remaining 199 being unpaved. The national carrier of France is Air France, a full service global airline which flies to 20 domestic destinations and 150 international destinations in 83 countries (including Overseas France) across all 6 major continents.

Water supply and sanitation

Main article: Water supply and sanitation in France

Foreign investment

France was the largest recipient of foreign investment in Europe in 2020, according to a study by Ernst & Young. This was due to changes in labor laws and taxes made by President Macron, which were popular with investors.

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 and the second-largest in Europe after Germany. In 1998, France traded goods worth $730 billion, which was 50% of its GDP. Most of France's trade was with other European Union countries, making up 60% of its total trade.

France and the United States also traded a lot. In 1998, they traded about $47 billion in goods. The U.S. sent many things to France, like chemicals, airplanes, and computer parts. France sent things like airplanes, drinks, and luxury goods to the U.S. France was the ninth-largest trading partner of the U.S.

In August 2023, France's money situation improved, with the deficit getting smaller by €29.7 billion over six months.

Regional economy

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

France's different areas have economies that are not as different from each other as in some other European countries. The area around Paris, called Île-de-France, is very wealthy because Paris is the capital city.

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

Rural areas are found in Auvergne, Limousin, 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

Data from 2021 shows that about 8.4% of people in France lived in poverty. This is lower than in some other countries, like the United States, where the rate was 18%. Some areas in France, especially parts of Marseille, have bigger differences between rich and poor neighborhoods. Foreign workers often had harder and lower-paying jobs compared to others 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, making up more than a quarter of the richest households there. Globally, France ranks fourth in wealth.
In 2010, the wealth each French adult had was a little more than $290,000, which was less than the highest point of $300,000 back in 2007. 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, which is 45% of the country’s total economy. In 2009, that number was just 194 billion euros, or 10% of GDP at the time.