France

IV

Economy

France, once primarily agricultural, has become increasingly industrialized since World War II. However, agriculture is still a major part of the economy and France is one of the leading agricultural producers in Western Europe. France has a long history of considerable State control in its economy.

During the post-war period, the government instituted a series of wide-ranging plans designed to foster national recovery and increase governmental direction of the economy. Included in the so-called Monnet plans was the principle of nationalization of certain industries, notably rail and air transport systems, major banks, and coal mines. The government, in addition, became a major shareholder in the motor, electronics, and aircraft industries, as well as the primary investor in the development of both oil and natural-gas reserves. Partly as a result of such plans and programmes, the national product of France increased by nearly 50 per cent between 1949 and 1954, by 46 per cent between 1956 and 1964, and at an average annual rate of 3.8 per cent during the 1970s. In 1981 the new Socialist government began a major programme of nationalizing industries; the election of a conservative government in 1986, however, led to a reduction of the state role in the economy. In 1989 and 1993 the government privatized a number of state companies, including Air France and several banks. After a series of public-sector strikes in 1996, the government shelved its austerity measures (including cuts to the welfare budget), which were intended to cut the public debt and allow France to meet the Maastricht criteria for European monetary union. Unemployment in France remained relatively high and reached 12.4 per cent in June 1996. In 2004 France’s GNP totalled an estimated US$1,888 billion (World Bank figure), or about US$34,600 per capita. The national budget included US$981 billion in revenues and US$917 billion in expenditures in 2005.

A

Agriculture, Forestry, and Fishing

About 34 per cent of the total area of France is arable, and about 2 per cent of the workforce (2001) is engaged in agriculture, along with forestry and fishing. Under normal conditions French farms, which are mainly small-scale enterprises averaging about 15 hectares (37 acres) each, produce sufficient cereal grains and other basic foodstuffs for national domestic needs. A valuable product of the soil is the wine grape. France and Italy lead the world in the production of wine: yearly French output in the mid-1990s was around 5,300,000 tonnes.

Production of the principal field crops in 2005 included sugar beet (29 million tonnes), wheat (36.9 million), potatoes (6.35 million), and barley (10 million). Other important field crops include rye, oats, turnips, artichokes, flax, hemp, and tobacco. In some parts of the country silk culture is important. Fruit-growing figures prominently in the economy of the French countryside, and large crops of eating and cider apples, pears, plums, peaches, apricots, berries, cherries, olives, citrus fruit, and nuts are harvested. Animals are also a key source of farm income. In 2005 livestock on the farms of France included about 19.4 million cattle, 9.19 million sheep, 15 million pigs, 1.21 million goats, and 350,625 horses, as well as 275 million poultry.

From a total of about 15 million hectares (37 million acres) of forest and woodland, more than three quarters are privately owned. About 70 per cent of the forests consist of oak, beech, and poplar. Timber production was about 44 million cu m (1.55 billion cu ft) in 1994. Resin, turpentine, and cork are also important products.

About 18,400 fishers are employed on the 12,940 French fishing craft that ply coastal waters and the high seas. In 2004 the fish catch totalled about 840,888 tonnes annually. Pollack, cod, hake, whiting, and tuna are the most important commercial fish.

B

Mining

France has a broad diversity of mineral resources. French iron-ore deposits are among the richest in the world, and in the early 1990s annual production totalled about 3.5 million tonnes. Coal production, concentrated mainly in the north, totalled about 1.74 million tonnes in 2003. Deposits of petroleum are located in the Landes region in the south-west. In 1994 annual production of petroleum totalled about 2.8 million tonnes and of natural gas about 33 billion cu m (1.2 trillion cu ft). Potash salts, salt, and zinc are also mined in France in significant quantities.

C

Manufacturing

The manufacturing industries of France compare favourably in volume, variety, and quality of output with those of other nations of Western Europe. About 24 per cent of the workforce is employed in manufacturing and industry. Among industries producing durable goods (other than metals), the manufacture of motor vehicles ranks high; the output of passenger cars was about 3.1 million in 1994. The largest manufacturer of cars in France is the nationalized Renault firm. Other durable goods produced in significant quantities in France are aircraft, television and radio sets, tyres, non-electrical machinery, and chemicals. Crude steel production was about 18.2 million tonnes in 1994. The French spinning and textile industry is one of the largest in the world: the production of yarn and cloth from wool, cotton, silk, and synthetic fibres was more than 377,000 tonnes in 1994. Sugar-beet refining is another important industry, as are food processing, distilling, and the manufacture of various specialized products. In the last-named field, several branches of French industry are internationally renowned for the quality of the articles produced, such as perfumes, gloves, lace, millinery, women’s clothing, tapestry, shawls, clocks, china, glassware, pottery, furniture, and numerous other luxury items.

D

Tourism

France has a thriving tourist industry, which capitalizes on both the country’s many natural beauties, and its rich history and culture. Paris is one of Europe’s most popular tourist destinations, and other favoured areas include the resort coastline of the French Riviera, rural Provence, the Dordogne, the Loire valley, and Brittany. Income from tourists amounted to some US$31.2 billion in 2005. Visitor arrivals totalled around 75.9 million.