Question

Write a page on the Economic Aspects of France. Report about the country's major economic indicators, such as GDP and GPD per capita, unemployment rate, major imports/experts, currently fluctuation, recent up/downturns, etc.

Answer 1

It shall be noted that France is a highly developed and free-market-oriented economy.

It is the world's 7th largest economy by 2019 nominal figures and the 10th largest economy by PPP figures. It is the 2nd largest economy in the European Union after Germany.

However, due to the current coronavirus pandemic, the French economy went through a turmoil phase.

The GDP in Q1, 2020 was $636,106 million.

France GDP down by 5.8 pct in Q1 2020, sharpest fall since 1949. GDP's negative evolution in Q1 2020 is primarily linked to the shutdown of 'non-essential' activities in the context of the implementation of the lockdown since mid-March. It is the biggest contraction in GDP since the second quarter of 1968 when the country was dealing with civil unrest, student protests, and general strikes.

The quarterly GDP per capita fell to $8608 vis-a-vis $8952 in Q1, 2019

The unemployment rate in France declined to 7.8 percent in the first quarter of 2020, the lowest level since the three months to December 2008 and below market expectations of 8.4 percent, due to a sharp fall in the number of unemployed declaring themselves available or actively looking for work during the period of lockdown.

Imports to France plunged 25% to €28.7 billion in April of 2020, the lowest reading since May of 2004. Exports from France slumped 32.4% to €23.7 billion in April of 2020, the lowest since August of 1999, mainly due to automotive products and pharmaceuticals.

France imports mainly mechanical equipment, electronic and computer equipment (21 percent of total imports); transport equipment (19 percent), of which aeronautics (11 percent) and automobile industry (7 percent); chemicals, perfumes, cosmetics (8 percent); agro-food industry products (8 percent); metallurgical and metal products (7 percent); natural hydrocarbons, other mining products, electricity (7 percent); textiles, leather (7 percent); jewelry, toys, furniture (5 percent); pharmaceuticals (5 percent); and rubber and plastic products, miscellaneous mineral products (5 percent). Main import partners are: Germany (16 percent of total imports), China (9 percent), Italy (8 percent), Belgium (7 percent), the US and Spain (6 percent each), the UK and the Netherlands (5 percent each).

France exports mainly transport equipment (23 percent of total exports), of which aeronautics (12 percent) and the automobile industry (10 percent). The country also exports mechanical equipment, electronic and computer equipment (19 percent); chemicals, perfumes, cosmetics (12 percent); agro-food industry products (10 percent); metallurgical and metal products (7 percent); pharmaceuticals (6 percent); textiles, leather (5 percent); rubber and plastic products, miscellaneous mineral products (4 percent); jewelry, toys, furniture (3 percent); and agricultural, forestry, fishery, and aquaculture products (3 percent). Main export partners are Germany (15 percent of total exports), Spain and Italy (8 percent each), the UK, the US and Belgium (7 percent each), China and the Netherlands (4 percent each).

A coronavirus lockdown was implemented in the country from March 14th and nonessential businesses had to close.

As indicated above, GDP's negative evolution in Q1 2020 is primarily linked to the shutdown of 'non-essential' activities in the context of the implementation of the lockdown since mid-March. The production of goods and services declined sharply by 5.5 percent. The sharpest fall was seen in construction with -12.6 percent. Output in goods and manufactured goods declined by 4.8 percent and 5.6 percent, respectively. For the January-March period, sales abroad declined by 6.5 percent while imports dropped by 5.9 percent. As a result, the foreign trade balance contributed negatively to GDP growth by -0.2 points