France Economic
France exports a wide range of goods and services and has an export-to-GDP ratio close to 30%. France’s highest dollar value goods exports include machinery, aircraft and spacecraft, vehicles, electronic equipment and pharmaceutical products
France exports the largest amount of goods and services to Germany, followed by Belgium, Italy, Spain and the United Kingdom. Outside of the European Union, the United States is the largest destination for French exports
The majority of imports are from European countries, which account for 68% of total imports, Outside of the European Union, France imports the most goods from China
Since the 1980s, the government of France has favored capitalism and market-orientated policies. French economic policy decisions are influenced by common European Union policies and targets, as well as France’s membership in supranational organizations such as WTO and the G7.
Since the economic crisis, the government has had to face new economic realities and has used fiscal policy as a tool to stimulate the economy and reduce the budget deficit. After missing deficit targets and with the French economy still experiencing weak growth rates, Hollande had to reevaluate his fiscal policy and in 2014 he pledged to cut government spending by EUR 50 billion over the next three years.
France has followed the common monetary policy of the Eurozone set by the European Central Bank (ECB). The ECB is committed to keeping inflation below, but close to, 2% over the medium term. Since the recent economic crisis, inflation has fallen below 1%, into the “danger zone”, causing the ECB to take unprecedented monetary policy actions. In 2014, the ECB cut the main refinancing rate to a record low of 0.15% and became the first major central bank to ever adopt a negative deposit rate.
Among goods, many agricultural products are protected at the