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Economic Overview

France is ranked as the world’s seventh largest economic power, just behind the United Kingdom and India (WEF, 2022). After suffering one of the sharpest economic contractions among EU countries in 2020 (-8%) due to the COVID-19 pandemic, France’s economy recovered strongly in 2021 (+6.8%). However, Russia’s invasion of Ukraine and the subsequent energy crisis dampened the recovery by reducing consumers’ purchasing power, denting confidence, and exacerbating supply-side difficulties (IMF). Economic growth slowed down to 2.5% in 2022, and according to IMF forecasts, it should further decrease to 0.7% in 2023 before strengthening to 1.6% in 2024.

In 2022, after a strong economic recovery from the COVID-19 pandemic in 2021, France’s economy was hit by an energy crisis driven by Russia’s invasion of Ukraine. Despite its reliance on nuclear energy and low dependence on Russian gas, France faced a sharp slowdown in economic activity and high inflation. A strong policy response was put in place to tackle the crisis, equivalent to over 2% GDP, and including gas and electricity price freezes, cash transfers to households, a fuel price rebate, and support for enterprises (IMF). Budget deficit decreased from -5.1% GDP in 2021 to -4.5% GDP in 2022, but it is expected to remain high in 2023 (-4.8% GDP) before decreasing in 2024 (-4.3%) thanks to fiscal consolidation measures (IMF). Public debt, which is one of the highest in the Eurozone, slightly decreased from 112.6% GDP in 2021 to 111.8% GDP in 2022. However, it is expected to rise again in 2023 (112.5% GDP) and 2024 (113.5% GDP). Driven by supply chain bottlenecks and the energy price shock, inflation soared from 2.1% in 2021 to 5.8% in 2022, but remained well below the EU average, largely due to energy price controls and subsidies (IMF). It is expected to remain high in 2023 (4.6%) before declining to 2.4% in 2024 (IMF). The priorities for 2023 include tackling inflation and protecting households, minimising the rise in unemployment, accelerating ecological transition and supporting healthcare and education. The France 2030 plan aims at boosting critical innovation and investment. In addition to the risk posed by new strains of the COVID-19 virus and waning vaccine effectiveness, France faces structural challenges: high structural unemployment, weak competitiveness, and high public and private debt burdens. High unemployment rates, especially among youth, remain a growing concern for policymakers.

Unemployment rate, which peaked at 8% in 2020, declined to 7.5% in 2022 and is expected to remain around that level in 2023 (7.6%) and 2024 (7.5%) (IMF). The deployment of short-time work scheme limited large-scale employment losses but continued efforts to boost worker skills and address inefficiencies in the educational system will be key (IMF). Social mobility remains low and the employment rates of many disadvantaged groups are poor.

Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 2,780.143,049.023,183.493,316.773,438.83
GDP (Constant Prices, Annual % Change)
GDP per Capita (USD) 42,35046,31548,22350,10151,800
General Government Balance (in % of GDP) -4.2-4.3-4.1-3.6-3.5
General Government Gross Debt (in % of GDP) 111.8110.0110.5110.4110.4
Inflation Rate (%) n/a5.
Unemployment Rate (% of the Labour Force)
Current Account (billions USD) -56.77-37.51-41.19-29.57-28.16
Current Account (in % of GDP) -2.0-1.2-1.3-0.9-0.8

Source: IMF – World Economic Outlook Database , October 2021

Country Risk

See the country risk analysis provided by La Coface.



Main Sectors of Industry

France is the largest agricultural power in the European Union, accounting for one-fourth of the EU’s total agricultural production. Nevertheless, the agricultural sector only represents a very small part of the country's GDP (1.6%) and employs 3% of the population (World Bank). French agricultural activities receive significant subsidies, especially from the European Union. Wheat, corn, meats and wine are France's main agricultural products.

France's manufacturing industry is highly diversified; however, the country is currently undergoing a de-industrialisation process, which has resulted in the outsourcing of many activities. Industry represents 16.7% of GDP and employs a fifth of the active workforce (World Bank). The key industrial sectors in France are telecommunications, electronics, automobile, aerospace and weapons.

The tertiary sector represents 70.3% of the French GDP and employs 77% of the active workforce (World Bank). France is the leading tourist destination in the world with a record of 66.6 million foreign visitors in 2022 (GlobalData). The discovery of the cultural and gastronomic heritage of France and shopping are the main activities popular with foreign tourists.
In 2022, due to the war in Ukraine, most businesses faced a surge in production costs, in addition to the pre-existing pandemic-related supply difficulties (Coface). Despite this challenging environment, the tourism sector rebounded strongly, with international revenues worth almost EUR 57 billion in 2022 (Atout France).

Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.5 19.5 78.0
Value Added (in % of GDP) 1.8 17.4 70.3
Value Added (Annual % Change) 1.1 -1.1 3.7

Source: World Bank - Latest available data.

Monetary Indicators 20162017201820192020
Euro (EUR) - Average Annual Exchange Rate For 1 USD 0.940.890.850.890.88

Source: World Bank - Latest available data.



Foreign Trade

France is a major actor in global trade. It is the world's ninth exporter and sixth importer of merchandise (WTO, 2021), and trade represents 60.8% of the country's GDP (World Bank, 2021). France exports essentially pharmaceutical products, aircrafts, vehicles, food products (wine), turbines and beauty products. The country imports vehicles, hydrocarbons, pharmaceutical products and many consumer goods (Comtrade). After collapsing in 2020 due to the COVID-19 pandemic, trade volumes rebounded in 2021 and remained high in 2022. According to IMF data, the volume of exports of goods and services increased by 6.9% compared to 2021, and the volume of imports increased by 6.7%. The IMF expects the volume of exports and imports to grow at a slower pace in 2023 (respectively +1.5% and +1.6%) and to accelerate in 2024 (respectively +3.7% and +3.2%).

France's main trade partners are the European Union (Germany being the 1st customer and supplier), the United States and China. The impact of the departure of the UK from the EU (Brexit) still raises many questions and may lead to a reorganisation of trade relations. The UK is currently France’s 6th customer and 8th supplier (Comtrade, 2021).

France registers a strong structural trade deficit. While the goods balance is structurally in deficit as the country is a net energy importer, the services balance is in surplus thanks to tourism revenues. According to WTO data, in 2021, France exported goods with a total value of USD 584.8 billion, while it imported them for a total value of USD 714.1 billion. As for the services, France exported around USD 303 billion worth services in 2021, while it imported services for the total value of USD 258.3 billion. Since 2015, the balance of goods and services excluding energy has become negative, as the deficit in manufactured goods continues to widen, mainly due to the relocation of automobile production and investment in imported machinery. Imports are developing quickly, as the French population buys a substantial amount of imported goods, which are sold at cheaper prices on the local market compared with products that are 'Made in France'. Despite the government's efforts to favour innovation, French exports have a relatively low added value. In 2021, the trade deficit excluding services reached USD 79.5 billion  (World Bank). According to the latest data published by INSEE (Points de Conjoncture, December 2022), in 2022 exports of goods and services increased by 8.1% compared to 2021, while imports increased by 8.9%. Despite limited trade with Russia, the war in Ukraine contributes to the deterioration of the external situation and a slowdown in activity in Europe. The weaker demand will hamper the rebound of key sectors such as aeronautics, and the automotive industry (Coface).

Foreign Trade Values 20182019202020212022
Imports of Goods (million USD) 676,441654,658581,297715,082818,260
Exports of Goods (million USD) 582,222570,951488,637585,021617,855
Imports of Services (million USD) 273,987267,073224,705258,251285,803
Exports of Services (million USD) 302,735295,746246,048301,321337,189

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20182019202020212022
Foreign Trade (in % of GDP) 64.464.156.960.872.1
Trade Balance (million USD) -60,734-52,800-65,669-79,447-144,267
Trade Balance (Including Service) (million USD) -32,201-24,198-46,837-38,447-89,630
Imports of Goods and Services (Annual % Change) 3.12.3-
Exports of Goods and Services (Annual % Change) 4.51.6-
Imports of Goods and Services (in % of GDP) 32.732.529.431.438.1
Exports of Goods and Services (in % of GDP) 31.731.627.529.434.0

Source: World Bank ; Latest available data

Foreign Trade Forecasts 2023 (e)2024 (e)2025 (e)2026 (e)2027 (e)
Volume of exports of goods and services (Annual % change)
Volume of imports of goods and services (Annual % change)

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

International Economic Cooperation
France is a member of the following international economic organisations: ICC, European Union, WTO, European Economic Area, G-5, G-7, G-8, G-10, G-20, IMF, OECD, among others. For the full list of economic and other international organisations in which participates France click here. International organisation membership of France is also outlined here.
Free Trade Agreements
The complete and up-to-date list of Free Trade Agreements signed by France can be consulted here.

Main Partner Countries

Main Customers
(% of Exports)
Germany 13.7%
Italy 9.2%
United States 7.9%
Belgium 7.9%
Spain 7.6%
See More Countries 53.8%
Main Suppliers
(% of Imports)
Germany 14.6%
Belgium 11.3%
Netherlands 8.2%
Spain 7.7%
Italy 7.4%
See More Countries 50.8%

Source: Comtrade, Latest Available Data



Political Outline

Current Political Leaders
President : Emmanuel Macron (since 14 May 2017; re-elected for a second term on 24 April 2022)
Prime Minister: Élisabeth Borne (since 16 May 2022)
Next Election Dates
Presidential elections: April 2027
Senate: September 2023
National Assembly: June 2027
Current Political Context
As the polls predicted, the 2022 presidential elections resulted in a duel between President Emmanuel Macron (La République En Marche, centre-liberal party) and Marine Le Pen (Rassemblement National, far right), amid failed attempts to unify the left. In April 2022, Macron was re-elected for an additional 5-year term, but abstention reached a 50 year record, and Le Pen managed to gather 41.46% of the votes. As Macron’s Ensemble! (Together) coalition lost its parliamentary majority at the legislative election in June, policymaking has become more challenging, with bills likely to be passed by decree. The biggest policy challenge is the program to reform the pension system (abolition of special regimes), that previously triggered a large-scale national strike and could lead to social unrest.

On the international scene, Russia’s invasion of Ukraine dominated current affairs. Macron multiplied diplomatic efforts to find a resolution to the conflict and plead for peace during talks with Russian President Vladimir. In November 2022 on the sidelines of the G20 meetings, he met with Chinese President Xi Jinping, and the two sides reaffirmed their opposition to the use of nuclear weapons in Ukraine. In December, U.S. President Joe Biden invited Macron at a State Dinner, demonstrating his unity with France and NATO members against Moscow's invasion. This visit was also an opportunity for Macron to raise the issue of Biden's Inflation Reduction Act, a USD 430 billion bill that offers massive subsidies for U.S.-made products. The war lead to a global food and energy crisis and supporting purchasing power is a priority. In August, the French government approved a EUR 20 billion package of measures to help households cope with inflation.
Main Political Parties
- The Socialist Party (PS): centre-left
- The Republicans: centre-right
- En Marche: centre, new liberal political movement founded by Emmanuel Macron
- National Rally (RN): far-right; first parliamentary representation in 1997 and gaining support amid growing voter scepticism towards the EU
- The Democratic Movement (MoDem): centrist
- Europe Ecology - The Greens (EELV): emphasises ecology and peaceful and sustainable lifestyles
- La France Insoumise (Unbowed France) (FI): far-left
- French Communist Party (PCF): communism, soft euro-scepticism
Executive Power
The President of the Republic is the Head of State. He/She is elected by direct universal suffrage for five years. He/She appoints the Prime Minister and his/her Government at the suggestion of the Prime Minister. The Prime Minister sets the amount of the State's expenses and revenue, and prepares some bills.
Legislative Power
The parliament is composed of the Senate and the National Assembly. The 348 senators are elected by indirect universal suffrage for nine years, renewable by a one-third majority vote every three years. The 577 deputies (MPs) are elected by direct universal suffrage. They examine bills and private bills successively, vote laws and monitor the Government. The economic, social and environmental council has an advisory function (optional or compulsory) within the framework of the legislative process.


COVID-19 Country Response

Travel restrictions
Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.
Import & export restrictions
A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.
Economic recovery plan
The summary of the EU’s economic response to the COVID-19 pandemic is available on the website of the European Council.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) undertaken by the French government, please consult the section dedicated to France in the IMF’s Policy Tracker platform.
Support plan for businesses
For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.