Economy
France has a social market economy characterised by sizeable government involvement and diversified sectors. For roughly two centuries, the French economy has consistently ranked among the ten largest globally; it is currently the world's ninth largest by purchasing power parity, the seventh largest by nominal GDP, and the second largest in the European Union by both metrics.[170] France is considered a great power with considerable economic strength,[171] being a member of the Group of Seven leading industrialised countries, the Organisation for Economic Co-operation and Development (OECD), and the Group of Twenty largest economies. France ranked 12th in the 2024 Global Innovation Index, compared to 16th in 2019.[172][173]
France's economy is highly diversified; services represent two-thirds of both the workforce and GDP,[174] while the industrial sector accounts for a fifth of GDP and a similar proportion of employment. France is the third-biggest manufacturing country in Europe, behind Germany and Italy, and ranks eighth in the world by manufacturing output, at 1.9 per cent.[175] Less than 2 per cent of GDP is generated by the primary sector, namely agriculture;[176] however, France's agricultural sector is among the largest in value and leads the EU in overall production.[177]
In 2018, France was the fifth-largest trading nation in the world and the second-largest in Europe, with the value of exports representing over a fifth of GDP.[178] Its membership in the eurozone and the broader European single market facilitates access to capital, goods, services, and skilled labour.[179] Despite protectionist policies over certain industries, particularly in agriculture, France has generally played a leading role in fostering free trade and commercial integration in Europe to enhance its economy.[180][181] In 2019, it ranked first in Europe and 13th in the world in foreign direct investment, with European countries and the United States being leading sources.[182] According to the Bank of France (founded in 1800),[183] the leading recipients of FDI were manufacturing, real estate, finance and insurance.[184] The Paris Region has the highest concentration of multinational firms in mainland Europe.[184]
Under the doctrine of Dirigisme, the government historically played a major role in the economy; policies such as indicative planning and nationalisation are credited for contributing to three decades of unprecedented postwar economic growth known as Trente Glorieuses. At its peak in 1982, the public sector accounted for one-fifth of industrial employment and over four-fifths of the credit market. Beginning in the late 20th century, France loosened regulations and state involvement in the economy, with most leading companies now being privately owned; state ownership now dominates only transportation, defence and broadcasting.[185] Policies aimed at promoting economic dynamism and privatisation have improved France's economic standing globally: it is among the world's 10 most innovative countries in the 2020 Bloomberg Innovation Index,[186] and the 15th most competitive, according to the 2019 Global Competitiveness Report (up two places from 2018).[187]
The Paris stock exchange (French: La Bourse de Paris) is one of the oldest in the world, created in 1724.[188] In 2000, it merged with counterparts in Amsterdam and Brussels to form Euronext,[189] which in 2007 merged with the New York stock exchange to form NYSE Euronext, the world's largest stock exchange.[189] Euronext Paris, the French branch of NYSE Euronext, is Europe's second-largest stock exchange market. Some examples of the most valuable French companies include LVMH, L'Oréal and Sociéte Générale.[190]