BoP Analysis of France
2013 – 2014 FALL TERM
ITF301 TERM PROJECT
BALANCE OF PAYMENT ANALYSİS OF FRANCE
Muratcan Arslan
201002040010
Kadir Cem OKTAY
20100204063
Contents PAGE
ABSTRACT 1
CURRENT ACCOUNT 2 - 3
ENERGY DEFICIT 4
TRADE IN GOODS AND SERVICES 5
EXPORTS AND IMPORTS 6
GEOGRAPHICAL STRUCTURE 6 - 7
DIRECT INVESTMENT 7
PORTFOLIO INVESTMENT 7
INTERNATIONAL INVESTMENT POSITION 8
POSITION IN LOANS, DEPOSITS AND SECURITIES 9 - 10
INTERNATIONAL INVESTMENT POSITION 10
REFERENCES 11
ABSTRACT
CURRENT ACCOUNT
In 2012, France’s current account, which records imports and exports of goods and services, as well as income flows between residents and non-residents, showed a deficit of 44.4 billion euros. This is equivalent to 2.2% of GDP and compares to a deficit of 35.2 billion, or 1.8% of GDP in 2011. The larger deficit is primarily due to the income balance (Table above).
After improving slightly at the beginning of the crisis in 2009 and 2010, the current account deficit started to grow again in 2011 and 2012. The three-year average of France’s current account deficit is equivalent to –1.6% of GDP according to the European Commission’s latest Macroeconomic Alert Mechanism Report scoreboard, based on data up to the end of 2011. The three-year average for each country must be between –4% and +6%. When the 2012 data from this report is considered, the European indicator for France stands at –1.8%.
The balance on trade in goods and services improved slightly in 2012 compared to 2011, but the deficit was still larger than in 2009 or 2010. Export growth slowed from 9.9% in 2011 to 2.1% in 2012 in value. However, exports continued to expand, thanks to certain sectors, such as
Aerospace (+18.2%)
Pharmaceuticals (+21%)
Merchanting (+15%)
Travel (+6%)
Transportation (+5%) and agri-food (+2.3%)
On the other hand, exports declined in other sectors, including the automobile
ITF301 TERM PROJECT
BALANCE OF PAYMENT ANALYSİS OF FRANCE
Muratcan Arslan
201002040010
Kadir Cem OKTAY
20100204063
Contents PAGE
ABSTRACT 1
CURRENT ACCOUNT 2 - 3
ENERGY DEFICIT 4
TRADE IN GOODS AND SERVICES 5
EXPORTS AND IMPORTS 6
GEOGRAPHICAL STRUCTURE 6 - 7
DIRECT INVESTMENT 7
PORTFOLIO INVESTMENT 7
INTERNATIONAL INVESTMENT POSITION 8
POSITION IN LOANS, DEPOSITS AND SECURITIES 9 - 10
INTERNATIONAL INVESTMENT POSITION 10
REFERENCES 11
ABSTRACT
CURRENT ACCOUNT
In 2012, France’s current account, which records imports and exports of goods and services, as well as income flows between residents and non-residents, showed a deficit of 44.4 billion euros. This is equivalent to 2.2% of GDP and compares to a deficit of 35.2 billion, or 1.8% of GDP in 2011. The larger deficit is primarily due to the income balance (Table above).
After improving slightly at the beginning of the crisis in 2009 and 2010, the current account deficit started to grow again in 2011 and 2012. The three-year average of France’s current account deficit is equivalent to –1.6% of GDP according to the European Commission’s latest Macroeconomic Alert Mechanism Report scoreboard, based on data up to the end of 2011. The three-year average for each country must be between –4% and +6%. When the 2012 data from this report is considered, the European indicator for France stands at –1.8%.
The balance on trade in goods and services improved slightly in 2012 compared to 2011, but the deficit was still larger than in 2009 or 2010. Export growth slowed from 9.9% in 2011 to 2.1% in 2012 in value. However, exports continued to expand, thanks to certain sectors, such as
Aerospace (+18.2%)
Pharmaceuticals (+21%)
Merchanting (+15%)
Travel (+6%)
Transportation (+5%) and agri-food (+2.3%)
On the other hand, exports declined in other sectors, including the automobile
References: