Last year, France faced threats of recessions due a 0.1% economic contraction in the first 3 months of the 4th quarter, but was able to quel the recession before year 2023 ended. According to a survey report released by Bank of France, the country was able to narrowly dodge the recession after the services sector resulted in a 0.1% Gross Domestic Product expansion during the final month of the last quarter.
The French Central Bank’s survey report also indicated that the nation can expect economic growth in 2024, as inflation levels are expected to go down in the coming months ahead. However, France is still anticipating risks that can impact economic growth in light of the growing social unrest and of the ongoing Ukraine war.
Nevertheless, the government is taking proactive steps in reforming the economy to help boost and sustain long term increases in production and services, while utilising fewer resources like human labour. That way, the country can avoid another contraction that will adversely impact its potential economic growth.
Facts about France’s Economic Sectors and How They Helped the Nation Return to Growth
In light of France’s successful rebound to economic growth, the nation still holds the world record for being the 7th largest and also the 2nd largest economy in Europe. The country’s main services industries include transport, financial services, health care, wholesa;e and retail trading, education and real estate.
Those industries make up the biggest service sectors of the French economy, which account for 79% of the total Gross Domestic Products. Other industries like agriculture and tourism account for 19 percent.
Actually, France’s agricultural sector accounts for only 2% of GDP. Yet the value of the country’s agricultural exports is substantial as France still ranks 2nd as one of the world’s top exporters of agri-products.
Tourism is another significant services sector as the country is recognised as the world’s most visited country. It owes its reputation for being the leading tourist destination across the globe for more than 30 years, to its rich natural resources and the legacies of its national heritage; particularly the French Gothic architectural style of its buildings.
Not to forget to mention among the country’s main tourist attractions include the endearing hospitality and impeccable lifestyle of the French people.