5 Largest Economies in Europe

2. France

5Y avg GDP (2017-2021): $2736.6 billion

5Y avg GDP growth rate (2017-2021): 1.02%

Despite having a high GDP, the French govt is facing difficulties in attracting skilled workers. France has compensated for this by combining numerous work licenses for highly trained people into one. With this new permission, known as Passeport Talent, 10 categories of labor migrants can now stay for up to four years. The card is also valid for foreigners who have earned advanced degrees in France.

The permit, though its effect is difficult to assess, might significantly improve France’s appeal to foreign employees if the government supports and promotes it properly. More precisely, as it is given by consulates (and prefectures for job transfers) rather than at the regional level, its effectiveness will also depend on coordinating inter-ministerial policies, educating companies, and connecting them with foreign talent.

According to EY, following COVID-19, investment in France increased by 24% to 1,222 projects in 2021, compared to 985 projects in the previous year. This made France the most attractive country in terms of foreign investments in 2021. Foreign Direct Investment (FDI) in France climbed by 6.2 USD billion in November 2022 as opposed to 5.0 USD billion in the previous month.

As of November 2022, LVMH held the top spot in France in terms of market value, with a market capitalization of over 366.3 billion dollars. Following closely after were L’Oréal and Hermes, whose market capitalizations were 192.9 and 159.1 billion dollars respectively.