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 in 2006 focused on introducing measures that attempt to boost employment through increased labor market flexibility; however, the population has remained opposed to labor reforms, hampering the government's ability to revitalize the economy. The tax burden remains one of the highest in Europe (nearly 50% of GDP in 2005). The lingering economic slowdown and inflexible budget items probably pushed the budget deficit above the eurozone's 3%-of-GDP limit in 2006; unemployment hovers near 9%.

GDP (purchasing power parity):
$1.871 trillion (2006 est.)

GDP (official exchange rate):
$2.154 trillion (2006 est.)

GDP - real growth rate:
2.3% (2006 est.)

GDP - per capita (PPP):
$30,100 (2006 est.)

GDP - composition by sector:
agriculture: 2.2%
industry: 20.6%
services: 77.2% (2006 est.)

Labor force:
27.88 million (2006 est.)

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

Unemployment rate:
9.1% (2006 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% (2006 est.)

Investment (gross fixed):
20% of GDP (2006 est.)

Budget:
revenues: $1.15 trillion
expenditures: $1.211 trillion; including capital expenditures of $NA (2006 est.)

Public debt:
64.7% of GDP (2006 est.)

Agriculture - products:
wheat, cereals, sugar beets, potatoes, wine grapes; beef, dairy products; fish

Industries:
machinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourism

Industrial production growth rate:
1.5% (2006 est.)

Electricity - production:
540.6 billion kWh (2004)

Electricity - consumption:
440.6 billion kWh (2004)

Electricity - exports:
68.6 billion kWh (2004)

Electricity - imports:
6.5 billion kWh (2004)

Oil - production:
77,690 bbl/day (2004 est.)

Oil - consumption:
1.977 million bbl/day (2004 est.)

Oil - exports:
409,600 bbl/day (2001)

Oil - imports:
2.281 million bbl/day (2001)

Oil - proved reserves:
144.3 million bbl (1 January 2002)

Natural gas - production:
1.4 billion cu m (2004 est.)

Natural gas - consumption:
45.41 billion cu m (2004 est.)

Natural gas - exports:
770 million cu m (2004 est.)

Natural gas - imports:
44.78 billion cu m (2004 est.)

Natural gas - proved reserves:
12.77 billion cu m (1 January 2005 est.)

Current account balance:
$-35.36 billion (2006 est.)

Exports:
$490 billion f.o.b. (2006 est.)

Exports - commodities:
machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages

Exports - partners:
Germany 14.7%, Spain 9.7%, Italy 8.7%, UK 8.3%, Belgium 7.1%, US 7.1% (2005)

Imports:
$529.1 billion f.o.b. (2006 est.)

Imports - commodities:
machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals

Imports - partners:
Germany 18.9%, Belgium 10.7%, Italy 8.3%, Spain 7%, Netherlands 6.6%, UK 5.9%, US 5.1% (2005)

Reserves of foreign exchange and gold:
$39.98 billion (August 2006 est.)

Debt - external:
$3.461 trillion (30 June 2006)

Economic aid - donor:
ODA, $5.4 billion (2002)

Currency (code):
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Exchange rates:
euros per US dollar - 0.7967 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)