GDP is one of the primary indicators that is used to gauge the state of health of a country’s economy. It is the total market value of all completed goods and services that have been produced within a country in a given period of time, usually a year. GDP figures allow us to understand a country’s economy in a clear way. Real GDP, in a similar way, is also a very useful indicator; this is a measurement that takes prices changes (inflation and deflation) into account, therefore acting as a key indicator for economic growth.
Gross domestic product per capita in France is predicted to continue falling in 2013 after a short period of growth in 2011 indicated that it may not, in fact, be on the mend. The country has been suffering significant economic hardship since the economic crisis of 2008 swept across the world. The European Union’s second largest economy is experiencing a shocking deterioration in its level of competitiveness. The items – cars, clothing, steel, electrical goods – that France is producing are simply failing to compete with the goods produced by Asian countries and its European neighbours, which, in turn, is leading to an accelerating fall in exports and a notable decline in the service and manufacturing sectors that support them. It could be argued that up until now France has managed to maintain its status as a reliable northern eurozone country, propped up by the uncontested reliability and strength of its principal partner, Germany.