To install StudyMoose App tap and then “Add to Home Screen”
Save to my list
Remove from my list
National economic growth is the increase in the levels of a country’s wealth and capital as a result of positive change in the levels of production of goods and services during a certain period of time (Aghion & Durlauf, 2005; Mokyr, 2005; Bourguignon, 2006). Economic growth is usually ignited by technological advancements and positive external forces. Economic growth can be measured either in terms of nominal growth or real growth.
Nominal growth takes inflation into account and thus demonstrates economic growth as Net Domestic Product while real growth does not account for inflation and thus demonstrates economic growth as Gross Domestic Product (Mokyr, 2005, p. 30).
According to the World Bank (2008) development data and statistics, France is ranked as a high income country. Indeed, France has been undergoing transition from a government owned high performing country into a liberalized economy (World Fact Book, 2009).
The main economic and financial indicators and drivers in France include privatization, labor , volumes of imports and exports, tax burden, rates of unemployment , real GDP growth rates, house hold income and consumption rates, inflation rates, public debt, lending rates, central bank discount rates, industrial production growth rate and balance of trade and payments.
According to the World Fact Book Website (2009), France capitalistic economy is largely privatized and adequately backed by appropriate laws, taxation laws and social spending programs that aim at reducing income disparities across the different economic classes of its citizenry.
Verified writer
Proficient in: Taxation
4.7 (346)
“ This writer never make an mistake for me always deliver long before due date. Am telling you man this writer is absolutely the best. ”
With foreign tourism records averaging 75million per annum, France’s tourism industry is one of the best performing economic sectors and remains one of the largest contributors to the country’s foreign income (World Bank Website, 2008).
Indeed, the services sector accounts for the France’s 77. 1 % of the GDP, followed closely by the industrial and agricultural sectors at 20. 3 % and 2. 2 % respectively (World Bank Website, 2008). Analysis of Purchasing Power Parity According to Bowler (2009), the French economy underwent sharp deterioration in the fourth quarter, with real GDP contracting to 1. 2 % quarter-over-quarter and 1 % year-over-year respectively.
This represented a subsequent drop in the third quarter by 0. 1 % quarter-over-quarter and 0. 6 % year-over-year, recessionary trends that is set to persist in 2009 through to 2010 (Bowler, 2009). So the big question is: what do this statistics portend for France? Generally, recessionary trends in the economic outlook of France simply translate to diminished purchasing power parity as demonstrated by increase in the rates of unemployment, decrease in levels of household incomes, high inflation rates, expanded public debt, high lending rates, diminished industrial production and increased deficits in the balance of trade and payments.
These implications further portend economic and financial difficulties at the individual household levels as demonstrated by bankruptcies, foreclosures and stock market failures. A comprehensive analysis of economic and financial indicators of France revealed that the country’s purchasing power parity stands at US Dollars 2. 097 trillion, with official exchange rates and real growth rate and GDP per capita standing at 2. 798 trillion, 0. 7 %, and US Dollars 32,700 respectively, courtesy of 2008 estimates of the CIA World Fact Book (2009) statistics.
The country’s labor force hit the 28. 5 million mark with unemployment rates soaring to 7. 4 %, lowest household income ratios tumbling to between 10 and 3 percent, inflation rates rising to 1 %, and public debt expanding to 67 % of the total GDP (World Bank Website, 2008). These statistics demonstrate systemic economic fluctuation trends in France compared to 2000 and 2006 economic statistics, as demonstrated by Table 1A (see appendices).
For example, employment in the industrial sector declined from 24. 9 % in 2000 to 24. 3 in 2006 and remained at 24. 9 % in 2008, with the agricultural sector employment registering a drop of 0. 5 % from 4. 3 % in 2000 to 3. 8 % in 2006 (UN Statistics Division, 2009; CIA World Fact Book, 2008). However, as demonstrated by statistics from the UN Statistics Division, (2009) and CIA World Fact Book (2008) unemployment rates have gone against the grain to register a decrease from 10 % in 2000 to 9. 8 % in 2006 and registered a further decrease to 7. 4 % in 2008.
The positive trends of employment rates are however set to reverse with the ongoing global recession (Bowler, 2009). In general, standards of machinery and inputs, the levels and dispersions of wages and technical skills as well as the composition of industrial output bear significant impact on the country’s outputs (Ball & McCulloch, 1999). Therefore, these economic recessionary statistics portend a decrease in the standards of living in France because PPP is the ultimate measure of the decency and standards of living in a country.
Analysis of Economic and Financial Indicators in France. (2020, Jun 01). Retrieved from https://studymoose.com/analysis-of-economic-and-financial-indicators-in-france-new-essay
👋 Hi! I’m your smart assistant Amy!
Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.
get help with your assignment
