Country report France

Economic Overview

In 2018,  France ranked as the world’s seventh largest monetary power, just behind the United Kingdom and India. The nation’s recovery from the financial emergency has come later than in other European nations and stays delicate because of auxiliary awkward nature. In the wake of developing at an expected pace of 2.3% in 2017, GDP developed by an expected 1.6% in 2018, upheld by strong venture, strong utilization, positive outer conditions and household changes. 

The IMF expects a 1.6% GDP development for both 2019 and 2020, upheld by work and item advertise changes that should assist help with working power support and efficiency (IMF, World Economic Outlook October 2018). Development projections have been as of late set apart down because of the negative effect of the social fights of the yellow vests development (« Mouvement des gilets jaunes » in French), mechanical activity and strikes in the open part. 

Main sectors of industry

France is the biggest horticultural power in the European Union, representing one-fourth of the EU’s all out agrarian generation. By and by, the horticultural area just speaks to a little piece of the nation’s GDP (1.5%) and uses under 3% of the population. French farming exercises get noteworthy sponsorships, particularly from the European Union. Wheat, corn, meats and wine are France’s primary agrarian items. 

Development ought to remain comprehensively unfaltering one year from now on strong residential interest. Family spending is seen gathering energy on account of tax breaks and a more tightly work showcase, balancing facilitating capital speculation development and cooling trades in the midst of shakier European interest. Dangers of monetary slippage and a lull in the pace of change remain drawback dangers to the standpoint, nonetheless. Our investigators see development at 1.2% in 2020, which is unaltered from a month ago’s figure, and at 1.3% in 2021. 

France’s manufacturing industry is highly diversified; in any case, the nation is at present experiencing a de-industrialisation process, which has brought about the re-appropriating of numerous exercises. Industry speaks to over 17% of GDP and utilizes a fifth of the dynamic workforce. The key mechanical divisions in France are media communications, hardware, vehicle, aviation and weapons. 

The tertiary part speaks to around 70% of the French GDP and utilizes more than seventy five percent of the dynamic workforce. France is the main vacationer goal on the planet with about 87 million remote guests in 2017. This figure speaks to an expansion of 5% from the earlier year. As indicated by primer evaluations, 2018 ought to be a decent year for the travel industry, yet the vicious pictures of demolitions and uproars that coursed in the media (particularly in the Champs Elysées) in connection with the road fights may negatively affect the area. 

Taxation in France 2019

The company tax rate for France is 31% for companies with an annual turnover below €250 million and 33.33% for companies with an annual turnover of €250 million and over.

A rate of 28% applies to the first € 500,000 of taxable income. Lower rates may apply to SMEs and new businesses.

A social contribution of 3.3% is payable if the corporate tax liability is more than €763,000. 

The normal corporate tax rate will be 28 % in 2020.

You can deduct certain things before calculating tax, which include a 10% deduction for work-related expenses, social security contributions, interest on certain business loans, and French pension contributions.

Investing in France

France is the world’s fifth largest economy, the second biggest consumer market in Europe and the world’s seventh largest foreign investor and it offers a wide array of business opportunities for investors.

Here are 5 reasons to consider France as an investment country:

  • France is the leading host country for foreign investment in industry (EY, 2016).
  • 25,000 foreign-owned subsidiaries (Eurostat, 2016) and 1,117 new FDI projects in 2016 (Business France 2016).
  • Europe was the world’s second largest market in 2017. With more than 67 million inhabitants and direct access to more than 500 million consumers in the European Single Market.
  • Largest concentration of headquarters in Europe. (Fortune Global 500)
  • In 2017, France was the leading European market for venture capital, with €2.7 billion funds raised (Q1-Q3) ahead of the United Kingdom. (Dealroom, 2017)

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