With a GDP of $2.865 trillion, France is the world’s sixth-largest economy. It has substantial agricultural resources, a large industrial base, and a highly skilled work force. A dynamic services sector accounts for an increasingly large share of economic activity and is responsible for nearly all job creation in recent years. Real GDP increased 0.7% in 2008. According to Organization for Economic Cooperation and Development (OECD) projections, 2009 GDP will decline by 3.3% (revised March 2009 forecast).

Government economic policy aims to promote investment and domestic growth in a stable fiscal and monetary environment. Creating jobs and reducing the high unemployment rate has been a top priority. The unemployment rate in metropolitan France increased to 7.8% in the fourth quarter of 2008 up from 7.5% in fourth quarter of 2007.. France joined 10 other European Union countries in adopting the euro as its currency in January 1999. Since then, monetary policy has been set by the European Central Bank in Frankfurt. On January 1, 2002, France, along with the other countries of the euro zone, dropped its national currency in favor of euro bills and coins.

Despite significant reform and privatization over the past 15 years, the government continues to control a large share of economic activity: Government spending, at 52.7% in 2008, is among the highest in the G-7. The government continues to own shares in corporations in a range of sectors, including banking, energy production and distribution, automobiles, transportation, and telecommunications.

In 2008, in a move to advance France's competitiveness, the National Assembly passed four bills introduced by the French government to modernize the economy and improve the labor market. In October 2007, under President Nicolas Sarkozy's impetus, overtime work beyond the 35-hour work week was exempted from income taxes and payroll taxes, a move to encourage work and to increase work time. Membership in France's labor unions accounts for approximately 5% of the private sector work force and is concentrated in the manufacturing, transportation, and heavy industry sectors. Most unions are affiliated with one of the competing national federations, the largest and most powerful of which are the communist-dominated General Labor Confederation (CGT), the Workers' Force (FO), and the French Democratic Confederation of Labor (CFDT).

France has been very successful in developing dynamic telecommunications, aerospace, and weapons sectors. With virtually no domestic oil production, France has relied heavily on the development of nuclear power, which now accounts for about 80% of the country's electricity production.

Trade
France is the second-largest trading nation in Western Europe (after Germany). France ran a $82 billion trade deficit in goods (Customs basis)in 2008. Total trade in goods for 2008 amounted to $1.294 trillion, over 45% of GDP, 75% of which was with EU-26 countries. In 2008, U.S.-France trade in goods and services totaled an $107 billion. U.S. industrial chemicals, aircraft and engines, electronic components, telecommunications, computer software, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, broadcasting equipment, and programming and franchising are particularly attractive to French importers. Total French trade of goods and services was $1.594 trillion in 2008.

Principal French exports to the United States are aircraft and engines, beverages, electrical equipment, chemicals, cosmetics, and luxury products. France is the eighth-largest trading partner of the United States.

Agriculture
France is the European Union's leading agricultural exporter, accounting for about 17% of all agricultural land within the EU-27. The share of agriculture in GDP has shown a steady decline since the early 1980s, representing less than 2.0% of France's GDP in 2007. Agricultural production not including subsidies increased 3.9% to €66.7 billion ($98.1 billion) in 2008. Northern France is characterized by large grain farms. Dairy, pork, poultry, and apple production is concentrated in the western region. Beef production is located in central France, while the production of corn, fruits, vegetables, and wine ranges from central to southern France. France is expanding its forestry and fishery industries. France remains extremely cautious about the cultivation of genetically modified (GM) plants at the domestic and EU levels. France is a proponent of the European preference principle and is attentive to protecting its interests in further agricultural trade liberalization at the EU and World Trade Organization (WTO) levels.

France is the world's second-largest agricultural producer, after the United States. The destination of 70% of its exports is other EU member states. Wine and beverages, wheat, meat, and dairy products are the principal exports. The United States, the third-largest exporter to France, faces stiff competition from domestic production, other EU member states, and third countries. U.S. agricultural exports to France, totaling $1.28 billion in 2008, consisted primarily of tree nuts, planting seeds, hides and skins, tobacco, red meats, seafood, hardwood lumber, and grapefruits. French agricultural exports to the United States amounted to $2.3 billion in 2008, half of it being wine and spirits.

GDP (2008): $2.865 trillion Avg. annual growth rate (2008): 0.7%, compared with 2.1% in 2007.
Per capita GDP at PPP (2008): $34,264 (preliminary)
Agriculture: Products--grains (wheat, barley, corn); wines and spirits; dairy products; sugar beets; oilseeds; meat and poultry; fruits and vegetables.
Industry: Types--aircraft, electronics, transportation, textiles, clothing, food processing, chemicals, machinery, steel.
Trade: Exports (2008)--$685 billion (f.o.b.): automobiles, aircraft and aircraft components, pharmaceuticals, automobile equipment, pharmaceuticals, automobile equipment, iron and steel products, refined petroleum products, cosmetics, organic chemicals, electronic components, wine and champagne. Imports (2007)--$605 billion (f.o.b.): oil and natural gas, automobiles, aircraft and aircraft components, refined petroleum products, automobile equipment, pharmaceuticals, iron and steel products, and computers/computer-related products. Major trading partners--EU and U.S.
Exchange rate: U.S. $1=0.68 euro in 2008.