Today we will talk about the level of economic development of neighboring countries in France. This is the largest state in Europe after Russia and Ukraine. Today the country is on the wave of recovery. It developed industrial-agricultural sectors.
However, the neighboring countries have a significant influence in the European Union.
We will talk further about what opportunities and problems the French neighbors have.
French neighbors
Before considering the level of development of the neighboring countries of France, it is worth talking about with whom, in fact, this state borders.
The actual neighbors in Europe are 8 countries - Monaco, Andorra, Luxembourg, Germany, Italy, Switzerland, Belgium and Spain. But there are also three "overseas" neighbors.
These countries border France’s possessions in Latin America. Mostly these are islands. Among them, it is worth noting Guadeloupe, Martinique, Reunion and Mayotte. There is also the mainland state of Guiana.
Belgium
The high level of economic development in Belgium began to develop and increase due to medieval industries. No wonder this country was called the "workshop state." The cities of Liège and Antwerp are famous for their gunsmiths and diamond craftsmen; Flanders is the center of the textile industry in Europe.
In principle, speaking about the Kingdom of Belgium, one can not help but mention one feature. Until the end of World War II, there was a clear demarcation of industry by region. Therefore, some were quite wealthy, while others had more modest incomes.
Since 1945, mainly due to the "Galopin Doctrine", there has been a sharp economic growth of the state. Light industry factories are emerging almost everywhere, oil refining is developing in Flanders, and Antwerp is becoming the third largest port in Europe. In addition, the headquarters of NATO and some other communities are being transferred to Brussels.
The country has experienced two recessions. In 1980-1982, when the budget deficit reached 13% of GDP, government debt increased significantly, as did unemployment. The second recession occurred in 1992-1993. During this crisis, the country's overall GDP growth fell by almost two percent.
But since 1994, the level of economic development in Belgium began to rise. Today, the kingdom is experiencing a white streak in this area. Despite the political crisis of 2007-2010, GDP is growing, and budget deficits and unemployment are falling.
Today, per capita GDP fluctuates around 38-40 thousand dollars. According to 2010 estimates, it was at $ 38,700.
Spain
Today, the level of economic development in Spain is at a high level. According to statistics for 2012, the state ranks fourteenth in the world ranking of countries.
The main branch of the economy, traditionally inherent in the Kingdom of Spain since the Middle Ages, was agriculture. The bulk of dates, almonds, sugarcane and olives are still exported by this state. You will be surprised, but the yield of Spanish rice is the highest on the whole planet. In addition, the state provides high volumes of wheat, wine and citrus fruits. At the same time, only about three percent of the working-age population is involved in the agricultural sector.
But the leading role of this sector of the economy at this stage is sharply reduced. Today, rapid growth is taking place in the production of footwear, spare parts for automobiles, machine tools, audio and video equipment, and chemical products.
If we talk about international statistics in the field of fourteen areas of production, then Spain is in the top five of each of the segments.
Surprisingly, unemployment is hardly affected by the level of economic development in Spain. The norm for the country is its indicator of 8-10%. For many states, this would be a strong blow. Spain is saved by a fairly high degree of illegal jobs and the shadow economy.
Italy
The level of economic development in Italy is very different regionally. If the northern regions are more developed due to industrial enterprises, the southern ones are significantly behind in this regard. In less developed areas, the shadow economy flourishes.
The main scourge of the Italian economy is illegal immigrants in particular, and all immigration in general. People from third world countries come here to search for better living conditions. Especially popular are the southern regions, since there you can quickly find a job in the agricultural sector. Employers are also happy with this situation. Illegals take a small cash payment for their services, so it is possible to carry out large amounts of finance without the knowledge of the tax authorities.
Today, the level of economic development in Italy ranks third in Europe. The main industries that keep the country afloat are: auto and motorcycle equipment, large household electrical appliances (refrigerators, etc.), shoes, clothes, pasta, olives, cheese, wine, canned fruits.
Today, per capita GDP (2013 data) is about $ 30,000. The official unemployment rate fluctuates around seven percent (2006), and inflation - 1.5% (2006).
Thanks to many years of history and the unique experience of enterprises in the north of Italy, the country can withstand the permanent crisis in the southern regions and the powerful flow of legal and illegal immigration.
Germany
The level of economic development in Germany is the highest in Europe and the fifth in the ranking of countries of the world. It loses only to such giants as the USA, China, Japan and India.
As a developed post-industrial republic, Germany receives the bulk of its capital from the service sector. It is in this industry that there is a maximum of jobs. She owns 78% of GDP (in 2011).
The peculiarity of the German economic situation is the long-term follow-up of the social market model. This paradigm includes the close interaction of trade unions and workers, a high tax rate. The main feature of such a model is entrepreneurship and government policy, which are of paramount importance, ensuring market development and the most even distribution of wealth.
On the one hand, it gave amazing results and contributed to the rapid rise of the country after two defeats in world wars. Today, the level of economic development in Germany is very high, but this phenomenon has a dark side.
A very high tax rate generates a large number of dependents. For comparison, for example, in the mid-1990s, tax deductions in Germany reached 65%, and in the United States - about 32%. According to statistics, $ 81 was deducted from $ 100 of the net salary for deductions to social institutions.
Today, retained income tax is 50%. GDP in 2013 is about 40 thousand dollars per capita, the unemployment rate is 5.5%, and inflation is 2.1%.
Switzerland
We continue to consider the level of economic development of neighboring France. Large neighbors such as Italy, Spain, and Germany were briefly studied. Now we will talk about small states. The first will be a review of the Swiss Confederation.
Although this country is quite rich, it is directly dependent on foreign policy and international relations. The main area from which enormous financial flows come is banking. Today in Switzerland there are more than four hundred banks. Due to the neutrality of the country and observance of secrecy regarding customer information, cash inflows are growing every year.
In addition to this area, the level of economic development in Switzerland is influenced by the pharmaceutical, chemical, food industries, the manufacture of watches, cheese and chocolate.
Strange as it may seem, agriculture is also important. It enjoys special favor from the government. It is the farmers who produce environmentally friendly products of plant and animal origin that are provided with significant tax benefits.
Also quite developed in Switzerland are insurance and tourism. The latter, in particular, brings the state more than one and a half billion francs per year.
Luxembourg
In this article we consider the level of economic development of neighboring countries in France. Now we will talk about a small state, which occupies one of the leading positions in terms of development and prosperity of the population.
The duchy covers an area of only two and a half thousand square kilometers. The population fluctuates around half a million people. But GDP per capita is about 129 thousand dollars.
The main industry that affects the level of economic development of Luxembourg is heavy industry. In particular, until 1997, metallurgy and steelmaking did their maximum speed. Today, not a single blast furnace is working; steel is processed from scrap.
The main incomes the population receives from the service sector, tourism, banking and trade. More than half of the active population of the duchy is occupied precisely in these areas.
In tourism, two areas dominate - resorts and hang gliding. In finance, offshore is the most attractive. Therefore, in the Duchy of Luxembourg there are more than two hundred international banks.
With such a high development, strangely enough, agriculture continues to exist. The most traditional are the following industries - livestock, grape growing and gardening.
Monaco
If you try to figure out which countries France borders on on the usual political map of Europe, you may not notice the two states, which we will talk about later.
The first of them is the Principality of Monaco. This is a small country, one of the smallest in Europe. Its area is only two kilometers square, and the population is about 36 thousand people. GDP per capita - 170 thousand dollars.
Where does such a tiny state come from with large capital flows? Let's take a closer look.
As we said earlier, the level of economic development of neighboring countries in France mainly depends on industry, agriculture, services and banks.
But in this small state there is so little space and many inhabitants that neither industry nor any other production of goods could simply provide the country financially.
In the Principality of Monaco, only the entertainment and tourism sectors of the economy are developed. Here are some of the richest casinos in the world (in the city of Monte Carlo), as well as the Formula 1 racing stage.
In addition to these areas, more income comes from covering the life of the princely family in the media, as well as elite tourism. Housing in Monaco is considered the most expensive in the world. For example, renting a one-bedroom apartment fluctuates around 4000 euros per month, with an average salary of 3200–3500 euros. And the cost per square meter of real estate for sale starts from 20,000 euros.
Andorra
If you look at the political map with which countries France borders, you may not notice this dwarf principality on the border with Spain. The territory of Andorra is only 468 square kilometers. The population is about 70 thousand people. GDP - an average of 35,000 per capita.
80 percent of the country's total gross domestic product is provided by tourism. About nine million people come here annually, with the majority of them being attracted by ski resorts.
Only about two percent of the territory is suitable for agriculture. Potatoes, barley, tobacco and rye are grown in Andorra. Not for nothing that the name of the country from the Basque language is translated as "wasteland".
The main problem of the Principality of Andorra is that the level of economic development of neighboring countries - France and Spain - directly affects its position. This situation is due to the fact that this dwarf state imports food and raw materials.
Undoubted advantages are soft tax policy, minimal government intervention in the economy. The latter, in particular, enables entrepreneurs to operate with virtually no limits.
There is also a duty free trade area. Therefore, in the Principality of Andorra, having arrived at a local ski resort, you can purchase high-quality French and Spanish products at a cost lower by 25-40% of their price in neighboring states.
"Overseas" neighbors
Finally, we will mention the states bordering the overseas possessions of France. These include Brazil, Suriname and the Antilles.
Brazil is a recognized economic giant in Latin America. It occupies a leading position in Mercosur (the united market of South America). The main focus of industry is the southern regions. It produces aviation, automobiles, steel, coffee, sugar, shoes, cloth and other goods.
The population of the northeastern regions lives much poorer. However, these cities today are beginning to attract large investments due to the improvement of economic policy in the country.
Unlike the previous giant, Suriname is the poorest country in Latin America. The state economy is built on industry and agriculture.
It produces oil from the seabed, bauxite, gold and aluminum. Cut down the forest.
Coconuts, rice, peanuts and bananas are grown. There are livestock and poultry farmers.
In total, according to official sources, about a quarter of the country's working population is involved in these areas.
The Netherlands Antilles is considered the oldest offshore in the world. This state lives on the services, refining and transportation of petroleum products, as well as ship repair.
Thus, in this article we have examined the economic situation in which neighboring countries of France are located.
Good luck to you, dear friends. Travel more often!