France's Economic Growth/Challenges

GDP Per Capita in 2014: $42,721.23

What is the French Economic Problem?

France’s economic problem is mostly due to its lack of growth. They have a high standard of living, yet their unemployment rate is rather high. Around three million people in France are unemployed, although France is one of the largest economies in the world (Walker). The problem of unemployment starts even at ages under 25. Most people of that age or younger in France who want a job don’t have one. The article also states that France’s GDP per capita was one of the slowest growing GDP’s of the more rich European countries (Walker). Although France’s GDP looks like they are doing really well, their unemployment rates say otherwise. The labor market there is difficult to enter, and that is adding up when looking at the growth rates for France overall.

Source:

Walker, Andrew. "What Is the French Economic Problem?" BBC News. BBC, 29 Apr. 2016. Web. 16 May 2016.

Note on the French Economy

The other article claims that France’s economic problems are due mainly to the outdated labor markets. France is currently in a contraction, and is considered one of the weakest countries economy-wise in Europe. The article states that the French labor market is extremely inflexible, and it is the cause of the lack of growth in the nation (Martin). France refuses to change the labor market, which is contributing the higher unemployment rates over the last few years. This is contributing to GDP by making it lower per capita than it could be. If France helped the younger generations get jobs, they could be in a better place when it comes to annual GDP and growth.

Source:

Martin, Will. "HSBS Note on the French Labor Market and Economy." Business Insider. Business Insider, 31 Mar. 2016. Web. 16 May 2016.

France on the Business Cycle

France is currently in a contraction. They are experiencing high unemployment rates and a lower GDP. Even the articles that I read stated that France is in a little bit of a contraction right now. In order to fix this, they need to work on expanding the labor market so that some young people can get jobs. France has plenty of different markets for young people to work in, they just need their labor standards to be more flexible.

Top 10 Products and Services for France

Advice for France

Capital Deepening

France needs to invest in something to make their jobs more available. If they had the equipment to make jobs quicker, they could consider opening up their labor market a little more. Capital deepening would be something that France could consider for improving their growth rate in the global economy as well.

Saving and Investment

France can’t have much savings because the unemployment rate is so high. People are saving their money because typically their children won’t get a job until after the age of 25. Again, if the job market was more open to young people, people would feel more comfortable in investing and companies in France would have the chance to grow.

Technological Progress

France is mostly selling agricultural products, tourist services, and power services. They should work on improving these areas as their growth increases after the contraction that they are currently in. Investing in these markets may be the key to some economic growth for the country.