Economic Environment of France

251 views 3 pages ~ 611 words
Get a Custom Essay Writer Just For You!

Experts in this subject field are ready to write an original essay following your instructions to the dot!

Hire a Writer

The purpose of this report is to give a brief picture of the economic environments and financial system of France. France’s economy has evolved over time and now is in the expansion phase of the economic cycle. Increased production, growth of the gross domestic product and increasing population have contributed towards this economic expansion.  The report also lays out some information about the currency, the amount of national debt, the different types of exchanges, economic regulators, and the extent of market share and gives a diagrammatic presentation of the Yield curve for the country. At the end of the report are examples of financial commodities, their characteristics and how these products can be determined.

Economic Conditions in France

The economic conditions of France are impressing with the country being the fifth largest country in economy worldwide. This has been contributed by the economic diversity and the country’s commitment towards economic development (Van den Berg et al 2006, p.296).  The main contributors to its economy is its services which represent 70% of the gross domestic product (GDP). France is also one of the world leading manufacturers in railway and automotive and pharmaceutical industries. About the country’s currency, France represents about a fifth of the gross domestic product (GDP) in terms of the Euro area (Gardiner, R. and Hajek, P 2017, p.95). France government has a national debt of around 2638 billion U.S. dollars (Reinhart, C.M. and Sbrancia, M.B 2015, p.302).

There are various major economic exchanges in France which include: Market services, public services, industry, construction, agriculture and fisheries with market services being the leading exchange. The government is the main regulator of the country’s economy headed by government officials (Ivaldi, G 2015, p.396). With a population of 64.6 million, France has a good domestic market for its products. It also has wide open markets for its products which has significantly contributed to its economy. France has a huge proportion of skilled labour force recording the highest number of graduates in science in Europe (Kerckhoff, A.C 2018, p.46). However, the country is faced with some economic challenges such as unemployment which is approximated to be 9.7 percent. The diagram below shows the flow of funds in the economy (Chinn, M. and Kucko, K 2015, p.142)

Source: France Government Bonds.

The first example of the financial products in France is the Return on Investment (ROI). The features of the return on investment includes investments on trade and market services.

ROI = (Net profit/Total investment) ×100

The other financial product is the gross domestic product which is contributed by industries, market services among other sources.

GDP = C+I+G+(X-M) = Consumer consumption + gross investment + public investment + (Exports – Imports).



Viney, C 2011, Financial market essentials, 1st edition, McGraw-Hill Australia, North Ryde, N.S.W.

Van den Berg, G.J., Lindeboom, M. and Portrait, F., 2006. Economic conditions early in life and individual mortality. American Economic Review, 96(1), pp.290-302.

Gardiner, R. and Hajek, P., 2017, October. Impact of GDP, Capital and Employment on Waste Generation-The Case of France, Germany and UK Regions. In Proceedings of the 8th International Conference on E-business, Management and Economics (pp. 94-97). ACM.

Reinhart, C.M. and Sbrancia, M.B., 2015. The liquidation of government debt. Economic Policy, 30(82), pp.291-333.

Ivaldi, G., 2015. Towards the median economic crisis voter? The New Leftist economic agenda of the Front National in France. French Politics, 13(4), pp.346-369.

Kerckhoff, A.C., 2018. Building conceptual and empirical bridges between studies of educational and labor force careers. In Generating social stratification (pp. 37-56). Routledge.

Chinn, M. and Kucko, K., 2015. The predictive power of the yield curve across countries and time. International Finance, 18(2), pp.129-156.

<> [Accessed May. 12, 2018]

August 18, 2023



Economy Political Science

Number of pages


Number of words




This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Eliminate the stress of Research and Writing!

Hire one of our experts to create a completely original paper even in 3 hours!

Hire a Pro