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France's Economy

France at a Glance

An overview of France's economy - one of Europe's largest, with strong state involvement, world-leading firms and a large welfare state.

France has about 68 million people and is Europe’s second- or third-largest economy.

Strengths

  • Aerospace: Airbus (with partners), Safran and Dassault.
  • Luxury: LVMH, Hermès and Kering.
  • Energy: nuclear power through EDF.
  • Agriculture: Europe’s largest farm producer.
  • Tourism: often the world’s most-visited country.
  • Pharma and cosmetics: Sanofi and L’Oréal.

State role

The French state traditionally plays a large role, owning stakes in firms and guiding industry.

Welfare state

Public spending is among the highest in the world, around 57 percent of GDP.

Euro

France uses the euro and is a founding EU member.

Why study France

France shows a model of state-led capitalism with a generous welfare state, and its debates over reform.

The Airbus plant

In Toulouse, Airbus assembles airliners with parts from across Europe, a symbol of French-led industrial cooperation.

Thinking France's economy is only food and fashion

Aerospace, energy and pharma are also major.

Key takeaways
  • France has about 68 million people.
  • Aerospace, luxury, energy and farming are strengths.
  • The state plays a large role.
  • Public spending is about 57 percent of GDP.
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