Economy

France is certainly an attractive country: it is the top tourist destination in the world! It enjoys a solid reputation for its cuisine and luxury industries.

These aspects often conceal the fact that French people’s high standard of living is based on a dynamic economy that is also attractive for foreign capital. The economy was long protected but is now open to Europe and the world; it is boosted by greater trade and increasing outsourcing by its companies.

However, current changes caused by globalisation and the upheaval in corporate financial structure since the 1990s are still posing many problems of adaptation. The country suffers from insufficient growth and a trade deficit, even though labour productivity is one of the highest in the world, household consumption remains healthy and the labour market is improving.

Source: France 2008, La Documentation Française