urg, and Netherlands;
the official flag for all French dependent areas

Economy France

Economy - overview:
France is in the midst of transition, from a well-to-do modern
economy that has featured extensive government ownership and
intervention to one that relies more on market mechanisms. The
government has partially or fully privatized many large companies,
banks, and insurers. It retains controlling stakes in several
leading firms, including Air France, France Telecom, Renault, and
Thales, and is dominant in some sectors, particularly power, public
transport, and defense industries. The telecommunications sector is
gradually being opened to competition. France's leaders remain
committed to a capitalism in which they maintain social equity by
means of laws, tax policies, and social spending that reduce income
disparity and the impact of free markets on public health and
welfare. The government has lowered income taxes and introduced
measures to boost employment and reform the pension system. In
addition, it is focusing on the problems of the high cost of labor
and labor market inflexibility resulting from the 35-hour workweek
and restrictions on lay-offs. The tax burden remains one of the
highest in Europe (43.8% of GDP in 2003). The lingering economic
slowdown and inflexible budget items have pushed the budget deficit
above the eurozone's 3%-of-GDP limit. Finance Minister Herve GAYMARD
has promised that the 2005 deficit will fall below 3%.

GDP (purchasing power parity):
$1.737 trillion (2004 est.)

GDP - real growth rate:
2.1% (2004 est.)

GDP - per capita:
purchasing power parity - $28,700 (2004 est.)

GDP - composition by sector:
agriculture: 2.7%
industry: 24.3%
services: 73% (2004 est.)

Labor force:
27.7 million (2004 est.)

Labor force - by occupation:
agriculture 4.1%, industry 24.4%, services 71.5% (1999)

Unemployment rate:
10.1% (2004 est.)

Population below poverty line:
6.5% (2000)

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 25.1% (1995)

Distribution of family income - Gini index:
32.7 (1995)

Inflation rate (consumer prices):
2.3% (2004 est.)

Investment (gross fixed):
19.2% of GDP (2004 est.)

Budget:
revenues: $1.005 trillion
expenditures: $1.08 trillion, including capital expenditures of $23
billion (2004 est.)

Public debt:
67.7% of GDP (200