The French Economy

Companies

The largest companies by market capitalisation in the CAC-40 index include Total and EDF, followed by banks and insurance companies (BNP-Paribas, Axa, Suez, Société Générale) and the steel group Arcelor-Mittal. France suffers from a lack of small and mid-sized firms, a sector that is strong in Germany and Italy in particular.

Foreign Direct Investment

With foreign direct investment of €58 billion in 2006, a constantly rising figure, France is the third country in the world in receipts of FDI, with all the consequent positive effects on employment.

Exports

France comes second here in Europe, with €386 billion in 2006 (behind Germany, its main partner) and second in the world (behind the United States) for agri-food exports, a staple of French foreign trade. But the country is beginning to lose market share to emerging countries.

France’s trade balance, however, continues to record a large deficit: -€29 billion.

Gross Domestic Product

France is the fifth largest economy in the world in terms of GDP (gross domestic product ) - €1,792 billion in 2006. In Europe, it is third, behind Germany and the United Kingdom.

Growth is mainly based on the construction and public works sector and services. The 2007 data indicate a certain slowdown.

France is the largest agricultural producer in Europe. Income per farm worker has risen faster than in the traded sector as a whole.

Although the share of industry in the French economy is lower than in its three largest European neighbours, a number of major French groups are world leaders in their specialities: for example, Peugeot, Renault, Saint-Gobain, Michelin, L’Oréal, Air Liquide.

Productivity gains in the last fifteen years have been particularly marked in electrical and electronic consumer goods.

Major retail groups have seen intensive international growth. Carrefour has risen to second place in distribution, behind the US Wal-Mart. In construction and concessions, Vinci is the world leader.