Invest in France

The economy of France is a highly developed social market economy. It is the world’s seventh largest economy by nominal GDP and the tenth largest economy by PPP constituting around 4% of world GDP.
With 31 companies that are part of the world’s biggest 500 companies, France was in 2020 the most represented country in the 2020 Fortune Global 500, ahead of Germany (27 companies) and the UK (22 companies).

Attractiveness: France confirms its leadership in Europe 

In 2021, France had hosted 1,607 investment projects (+32% compared with 2020) that had enabled 45,008 jobs to be created or maintained (+30% compared with 2020). 

One in five investment projects in Europe now takes place in France. The average number of jobs created per project (38) is also up by 12% compared with 2020. With 69% of site expansions (compared to 23% in the United Kingdom and 19% in Germany), France stands out for the satisfaction of foreign investors established in France; a business that establishes itself here, expands here and sustains its activity here. As such, it creates employment and economic benefits for the region in which it operates. 

“The EY Attractiveness Survey 2022 recognizes the impact of the reforms introduced during the government’s five-year term (2017-2022) and the recovery plan, which have made it possible to strengthen and communicate better about France’s structural key strengths. Being the most attractive country for the third year in a row, and by increasing the gap with Germany and the United Kingdom, is already a success in itself. But knowing that 56% of investors would like to set up or expand their operations and repatriate their industrial activities to France obliges us to continue the reforms and be even more attentive to them. France will rely on the “France 2030” investment plan, on the relocation of value-added chains and on a Europe that has become less naive to anchor this leadership in the decade to come.” says Pascal Cagni, Chairman of Business France. 

France remains in first place in the European rankings for manufacturing projects, with 482 projects, ahead of the United Kingdom (145 projects) and Germany (106 projects). This is all the more important as supply chains are being rebuilt and France has an important role to play in this reorganization. The “France 2030” investment plan, which addresses the sectors of the future, constitutes a fundamental factor of attractiveness in which foreign investors have their place and have understood it well, since 56% of them plan to relocate their activities to France over the next three years. 

Foreign investments trickle down to all areas of France and not just to the major cities. As the data produced in the latest report on foreign direct investment by Business France last March clearly showed, nearly one in two industrial projects is located in an area of ​​fewer than 50,000 inhabitants (45% of projects and 72% of industrial projects in municipalities with fewer than 20,000 inhabitants). 

Highly qualified and productive human resources

France invests heavily in its education system with more than 550 international programs and 18 languages taught. Given this investment, France offers a large and qualified workforce: 1.2 million engineers and scientists with a degree from a French Institution; 50% of 25- to 34-year-olds in France hold a higher education diploma (versus 35% in Germany and 36% in Italy). In addition, labor costs are under control: between 2017 and 2021, the unit cost of labor increased by less in France (+4.4%) than in Italy (5.4%), Spain (+11.1%) or in Germany (+11.8%).

A country for entrepreneurs

It is no coincidence that “entrepreneur” is a French word. In 2021, 995,868 new businesses were created (+17.4% compared with 2020), reaching a new record. In all the various economic sectors, France has the key strengths conducive to setting up a thriving business: easy access to capital and finance, a dynamic ecosystem for startups, highly qualified human resources, as well as a sound legal framework.

France 2030 investment plan: 54€ billion to build the France of tomorrow

France 2030 sets out a twofold ambition: sustainably transforming key sectors of our economy (energy, automotive, aeronautics and space) through technological innovation, and positioning France not only as a player but as a leader in the world of tomorrow. From basic research to the emergence of an idea and the creation of a new product or service, France 2030 supports the entire life cycle of innovation right up to industrialisation.

France remains an attractive investment destination offering a highly skilled labor force, business friendly reforms, economic and political stability, intellectual property rights protection and incentives such as the research tax credit amongst others.