France’s GDP in 2023
France is in 7th placee data collected after calculating the world’s economic power, GDP (gross domestic product). What will be France’s GDP in 2023? How much wealth is produced by the residents of France? Keep an eye out for important geopolitical information for each country!
GDP: Definition and Calculation
Definition of GDP (Gross Domestic Product).
GDP (Gross Domestic Product) is an economic indicator that measures the value of all goods and services produced in a country in a year. It includes final goods and services, i.e. those intended for final use rather than for the production of further goods or services. GDP is used to measure the wealth of a country and compare its economic growth with other countries.
Calculation of GDP
There are several ways to calculate GDP, but the most commonly used method is as follows: GDP = household consumption + business investment + government spending + exports – imports.
Household consumption measures the value of goods and services purchased by households for their own use. Business investment includes expenses incurred by businesses to purchase machinery, equipment, and new buildings. Government spending includes government spending such as health, education, and defense spending. Exports are goods and services produced in a country and sold abroad, while imports are goods and services bought from other countries.
It is important to note that GDP does not measure the quality of life of people in a country or the well-being of the population. It also does not take into account unpaid economic activities, such as domestic or voluntary work, which have significant value to society.
Also read: GDP (Gross Domestic Product): definition and calculation
France’s GDP in 2023
France’s GDP is $2,936.70 billion in 2023. Since 2022 GDP has not yet been calculated, this amount is the 2021 amount. However, according to various forecasts, the effects of the pandemic, as well as the economic and energy crisis hitting Europe, could affect French growth.
Thus, according to various forecasts, France’s GDP in 2023 could be $3,013.05 billion. This corresponds to an increase of 2.6% in 2022, the same percentage as in 2021. However, the Banque de France estimates that growth in France could slow to 0.2% at the end of 2022.
Also read: Ranking of countries by GDP 2022: the richest countries in the world
Evolution of French GDP from 1970 to 2023
The evolution of France’s GDP has been relatively stable over the past decades. Since the 1970s, the average annual growth rate of GDP has been around 2%, although there have been fluctuations over the years.
In the 1970s, economic growth in France was relatively strong, with annual growth rates of up to 5%. This growth was supported by a construction boom, increased household consumption and increased business investment.
However, economic growth slowed in the 1980s due to rising interest rates and the appreciation of the French currency, which made exports less competitive. In addition, the economic reforms carried out during that period led to an increase in unemployment and a decrease in household consumption.
In the 1990s, economic growth was more stable, with an average annual growth rate of around 2%. This stability was supported by an increase in business investment and a decrease in the unemployment rate.
In the early 2000s, economic growth was slightly above the long-term average, thanks to increased household consumption and business investment. However, the 2008 financial crisis had a negative impact on GDP growth, which declined significantly in 2009.
Since then, economic growth in France has been relatively weak, varying between 1% and 2% per year. Despite this, GDP continued to grow due to inflation and population growth. In 2020, the COVID-19 pandemic had a negative impact on economic growth in France, which experienced a recession during the year.
Also read: GNP (Gross National Product) or GDP