World Competitiveness Report

I. World Competitiveness Report

Traditionally a black spot, the situation of France’s labor market has improved markedly over the year (61st, up 10), thanks to increased flexibility, although it still remains a challenge (107th, up nine). By contrast, the fiscal situation—the second area of major concern—continues to deteriorate (82nd, down nine). The small reduction in the budget deficit is accompanied by an increase in public debt and a downgrading of France’s creditworthiness. The country retains a number of clear competitive advantages, however. Its infrastructure is still among the best in the world. France also obtains good marks for the quality and quantity of education at all levels, and it boasts a high degree of technological adoption (17th). In addition, the country’s business culture is highly professional and sophisticated (22nd). These three strengths contribute to creating a relatively conducive ecosystem for innovation (19th). However, on this dimension, France trails Germany, the United Kingdom, and the Scandinavian countries by a significant margin.

II. National Accounts (GDP and GNI)

1. Nominal and real GDPpc

The differences between nominal and real values comes from the fact that real values are adjusted for inflation, while nominal values are not.

2. Official exchange rate versus PPP

GDP (PPP) removes exchange rate fluctuations. Real GDP removes inflationary pressures. PPP is how much of a local good a person can buy in their country. PPP is used to determine the relative value of a currency.

3. GDP versus GNI

No information before 1990

The GDP the measure of a country’s overall economic output. It is the market value of all services and goods within the borders of a nation. The GNI is the total value that is produced within a country, which comprises of the Gross Domestic Product along with the income obtained from other countries (dividends, interests). One of the main differences between the two, is that the Gross Domestic Product is based on location, while Gross National Income is based on ownership. It can also be said that GDP is the value produced within a country’s borders, whereas the GNI is the value produced by all the citizens.

Gross Domestic Product helps to show the strength of a country’s local income. On the other hand, Gross National Income helps to show the economic strength of the citizens of a country.

4. GDPpc, level and grwoth of rate

We can see that the growth rates were very high during the 1960s until 1973 corresponding to the first oil crisis. France has a really quick recovery

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