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economy of France PDF Print E-mail
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Thursday, 09 June 2011 10:13

Paris, FranceFrance is a member of the G8 group of leading industrialised countries, it is ranked as the world's fifth largest and Europe's second largest economy by nominal GDP; with 39 of the 500 biggest companies of the world in 2010, France ranks world's 4th and Europe's 1st in the Fortune Global 500 ahead of Germany and the UK. France joined 11 other EU members to launch the euro on 1 January 1999, with euro coins and banknotes completely replacing the French franc in early 2002.


France has a mixed economy which combines extensive private enterprise (nearly 2.5 million companies registered) with substantial (though declining) state enterprise and government intervention (see dirigisme). The government retains considerable influence over key segments of infrastructure sectors, with majority ownership of railway, electricity, aircraft, nuclear power and telecommunications. It has been gradually relaxing its control over these sectors since the early 1990s. The government is slowly corporatising the state sector and selling off holdings in France Télécom, Air France, as well as the insurance, banking, and defence industries. France has an important aerospace industry led by the European consortium Airbus, and has its own national spaceport, the Centre Spatial Guyanais.

According to the WTO, in 2009 France was the world's sixth-largest exporter and the fourth-largest importer of manufactured goods. In 2008, France was the third-largest recipient of foreign direct investment among OECD countries at $117.9 billion, ranking behind Luxembourg (where foreign direct investment was essentially monetary transfers to banks located in that country) and the United States ($316.1 billion), but above the United Kingdom ($96.9 billion), Germany ($24.9 billion), or Japan ($24.4 billion). In the same year, French companies invested $220 billion outside of France, ranking France as the second most important outward direct investor in the OECD, behind the United States ($311.8 billion), and ahead of the United Kingdom ($111.4 billion), Japan ($128 billion) and Germany ($156.5 billion). With 39 of the 500 biggest companies of the world in 2010, France ranks 4th in the Fortune Global 500, behind the USA, Japan and China, but ahead of Germany and the UK.

France is the smallest emitter of carbon dioxide among the seven most industrialized countries in the world, due to its heavy investment in nuclear power. As a result of large investments in nuclear technology, most of the electricity produced in the country is generated by 59 nuclear power plants (78% in 2006, up from only 8% in 1973, 24% in 1980, and 75% in 1990). In this context, renewable energies are having difficulties taking off the ground.

 

Last Updated on Thursday, 09 June 2011 10:38