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IN
THE SPOTLIGHT
We highlight macro-economic forecasts , business surveys and trade projections for manufacturing in France for 2024 and beyond .
“ Machine tool markets and industrial activity in France come under the spotlight .”
As a republican state and a parliamentary democracy , France has a Parliament that is made up of the National Assembly ( Assemblée Nationale ) and the Senate ( Sénat ). There are three sublevels of governance in France : the Regions ( régions ), the Departments ( départements ) and the Municipalities ( communes ). It is an advanced , high-income EU economy with overseas regions / territories in the Americas and the Atlantic , Pacific and Indian oceans .
“ The country plays an influential global role as a permanent member of the United Nations Security Council ; NATO ; the EU ; G-7 ; G-20 and other multilateral organisations . Much of France ’ s population is concentrated in the north and south east , although there are many urban agglomerations throughout the country . Paris is the largest city ,” outlined the CIA World Factbook .
“ After a strong economic recovery from the COVID-19 pandemic , France was hit by an energy shock driven by Russia ’ s invasion of Ukraine . Inflation rose and economic activity slowed . Nevertheless , the economy has remained resilient and inflation is well below other EU countries due to more limited reliance on Russian gas and a strong policy response — including price controls on gas and electricity , tax reductions on fuel products , transfer payments and measures to support businesses . This cushioned the impact of the energy price shock but has been costly for the government and not well targeted ,” commented the International Monetary Fund ( IMF ) in February 2023 .
Business surveys
Examples of strong industry sectors in France include aircraft manufacturing ; machinery ; automotive ; electronics ; pharmaceuticals , chemicals , food processing and metallurgy . It is transitioning to a green economy via the “ France 2030 ” strategy .
The Banque de France publishes a range of monthly and quarterly economic surveys that provide a snapshot of the French economy in the form of business climate indicators and short-term forecasts .
According to the business leaders that it surveyed ( approximately 8,500 companies and establishments between 28 November and 5 December 2023 ), activity continued to rise in market services and the finishing works of the construction sector , while it was almost stable in industry and declined in structural works .
“ Forecasts for December suggest that activity in the services sector
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