France is one of the most popular and visited European countries. It has been on the list of top holiday destinations for several years running. France offers an exhilarating mix of great cities, amazing countryside, famous landmarks, UNESCO world heritage sites, and mouthwatering cuisines. It also has a rich history and traditions that enrich its cultural scene. It is home to many international institutions such as the OECD and UN. Because of all these factors, it almost feels like a country from another continent rather than one in Europe. In fact, at 31st in terms of GDP per capita in 2017, it is still far below its level when it was first included in the EU back in 1993. However, not everything about France is perfect. Its economic performance has been declining for quite some time now and there are several reasons for this issue. For example: – Its aging population will eventually reduce its working-age population significantly by 2050 which could drag down its future economic growth potential even further; – The lack of competitiveness is likely to continue plaguing the country’s industrial sector which is already under pressure with low labour costs; – And finally, the threat posed by emerging digital economies may make traditional industries less important going forward which could limit France’s export potential even further.

What is the current situation of France’s economy?

France’s GDP per capita stands at about US$35,000 in 2017. However, it has been on a downward trend over the last few years. This can be explained by the following factors: – The aging population is likely to reduce the working-age population significantly by 2050 which could drag down France’s future economic growth potential even further; – The lack of competitiveness is likely to continue plaguing the country’s industrial sector which is already under pressure with low labour costs; – And finally, the threat posed by emerging digital economies may make traditional industries less important going forward which could limit France’s export potential even further. These trends are likely to continue in the future. France’s economic growth is projected to remain slow in the coming years and its per capita GDP is not expected to improve much in the next few decades.

How is France expected to develop in the future?

The demographic trends play an important role in France’s economic growth. The aging population will eventually reduce its working-age population significantly by 2050 which could drag down its future economic growth potential even further. On the other hand, the strong influx of foreign workers from other EU countries and the rest of the world could enhance its economic growth potential in the future. As a result, the potential growth rate of France’s per capita GDP is likely to be around 1.9% by 2050. However, this figure is very volatile and could go up or down significantly depending on future global and domestic economic conditions.

Factors that will determine France’s economic growth

France’s economic growth depends on many factors that are out of the control of a government. The overall health of the global economy is one of the most important factors that could impact France’s economic growth. If it is strong, the demand for French exports will rise and this could result in higher revenue and GDP growth. On the other hand, weak demand in the global economy could lead to lower export revenue and GDP growth. The level of inflation and interest rate are important factors that could also affect economic growth. Rising inflation could lead to lower spending power and hence lower economic growth. In the long run, low interest rate encourages investments and boosts economic growth.

Key facts about the population of France

– The population of France was estimated to be 64.9 million as of July 2018. – The fertility rate of France has been declining over the last few decades and it is currently at 2.2 children per female which is much below the replacement rate of 2.1. – The age pyramid of France has also been changing drastically over the years due to the increasing number of people who are above 60 years of age. This will have a significant impact on the country’s economy in the coming decades. – The life expectancy at birth of France is about 81 years which is about 6 years lower than the OECD average. This can be attributed to a number of factors such as poor health care system and diets. – The urbanization rate of France has been increasing rapidly over the years and it is currently at 79%.

How does the population growth impact economic growth?

The population growth of France has been increasing in recent years and it is currently at 0.75% per year. This trend is likely to continue in the coming decades. In the long run, the growing population could have a significant impact on the country’s economy. The increasing population will require more investments in areas such as healthcare and education. This will increase the fiscal pressures on the government and result in higher spending. This will increase the demand for goods and services which are typically produced by the service industries. This will boost the country’s economic growth.

France’s risk factors for economic growth

The lack of competitiveness is likely to continue plaguing the country’s industrial sector which is already under pressure with low labour costs. This could further limit the export potential of French goods and make them less competitive in the global markets. The increasing digitalization of the economy is likely to replace traditional industries such as steel and automobile manufacturing in the future. This could further reduce the importance of traditional industries such as agriculture and forestry in the country’s economy.

Bottom line

France is a great country with an impressive history, culture, and scenery. However, it cannot be compared to other developed economies in terms of economic performance. For now, it can be considered as a middle-income country rather than a high-income one. Its per capita GDP is expected to remain around US$35,000 in the coming decades. This will allow tourists to enjoy its beautiful landscapes, visit its UNESCO world heritage sites, and taste the mouthwatering cuisines. However, the threat posed by emerging digital economies may make traditional industries less important going forward which could limit its export potential even further.