FRENCH ECONOMY

"France now ranks among the world's most economically advanced nations"

France was one of the world's richest nations during the 18th century and late in the century launched itself promisingly into industrialization. However, unlike England and the rest of Europe, France didn’t maintain the momentum of its early industrial start and was still primarily an agricultural nation at the end of the 19th century. Industry expanded behind protective trade barriers in the early 20th century, but most growth has occurred since World War II. France now ranks among the world's most economically advanced nations.

France was one of the world's richest nations during the 18th century and late in the century launched itself promisingly into industrialization. However, unlike England and the rest of Europe, France didn’t maintain the momentum of its early industrial start and was still primarily an agricultural nation at the end of the 19th century. Industry expanded behind protective trade barriers in the early 20th century, but most growth has occurred since World War II. France now ranks among the world's most economically advanced nations.

France has substantial agricultural resources and is the European Union's most important agricultural nation. It also has a large industrial base and a highly skilled work force. However, today the economy in France is determined by the services industry, which includes banking, retail and wholesale trade, communications, health care, and tourism.

The economy in France tends to grow at roughly the average rate for an industrialized western European country which is just under 3%. Economic growth rates in France have been steady for decades due to conservative planning of the economy which in comparison to other western European countries is more centralized by the government in France. In fact, one of the peculiar characteristics of the French economy was the level of state control of many economic sectors which have long ago been privatised in other countries. However, France is gradually moving from a well-to-do modern economy with extensive government ownership and intervention to one that is driven by market dynamics. More and more industries and services are being privatized including large companies, banks, and insurers.

The government maintains considerable influence over key segments of infrastructure sectors including railway, electricity, aircraft, and telecommunication firms. Yet since the 1990s it has been gradually relaxing its control over these sectors and is slowly selling off holdings in France Télécom, Air France, and the insurance, banking, and defense industries.