Global InformationEconomic history of France information
The economic history of France involves major events and trends, including the elaboration and extension of the seigneurial economic system (including the enserfment of peasants) in the medieval Kingdom of France, the development of the French colonial empire in the early modern period, the wide-ranging reforms of the French Revolution and the Napoleonic Era, the competition with the United Kingdom and other neighboring states during industrialization and the extension of imperialism, the total wars of the late-19th and early 20th centuries, and the introduction of the welfare state and integration with the European Union since World War II.
Medieval and early modern France experienced periods of economic growth, as well as challenges such as wars, plagues, and social inequality. The economy relied heavily on agriculture, trade, and the production of luxury goods, and the power and influence of the monarchy played a significant role in shaping economic policies and development. In the late 18th century, French industries faced challenges from competition with England, leading to an industrial depression. The American War of Independence had mixed effects on trade, while the French economy experienced setbacks, including agricultural price reductions and debt accumulation.
France experienced a mix of growth, stagnation, and setbacks during the period from 1789 to 1914. It faced economic challenges related to the French Revolution, Napoleonic wars, protectionism, and industrialization. While France made some advancements in banking and finance, it fell behind other nations in terms of industrial development. Colonialism played a complex role in France's economic and geopolitical landscape. While it provided economic benefits and resources, it also had consequences for the colonized peoples, including exploitation, cultural assimilation, and the suppression of local autonomy.
In 1914-1944, World War I, the interwar period, and the German occupation during World War II had significant impacts on the French economy, resulting in economic challenges, inflation, labor unrest, and hardship for the population.
During the Trente Glorieuses, from 1947 to 1973, France experienced a booming period with an average annual growth rate of 5%. The population grew rapidly, fueled by a high birth rate and declining mortality rate. The economy's growth was driven by productivity gains and increased working hours, as well as investment in targeted industries, regions, and products through indicative planning. The government played a significant role in directing investment and supporting industries of strategic national importance.
During the 1980s France faced economic troubles including a short recession. This led to a shift away from dirigisme, or state intervention, towards a more pragmatic approach. Economic growth resumed later in the decade but was hindered by the economic depression in the early 1990s, which affected the Socialist Party. Jacques Chirac's liberalization measures in the late 1990s strengthened the economy. However, the global economic stagnation after 2005 and the 2008 global crisis had adverse effects on France and the Eurozone, causing difficulties for Nicolas Sarkozy's conservative government.