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Edition July 2, 2018 - Crédit Agricole S.A.
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  • Edition July 2, 2018

    France – Competitiveness and market shares

    France is showing symptoms of a competitiveness gap. These include the loss of share of French exports in world exports and the persistent trade deficit. They reflect poor export performances and robust imports. With very few exceptions, foreign trade has contributed negatively to growth in France since the early 2000s.

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  • Content:

    - Summary
    - The symptoms of a competitiveness gap
    - The roots of a competitiveness gap
    - An improvement in the financial statements of NFC
    - Market share catch-up slow to materialise

  • Extract:

    However, despite these promising recent trends, French market shares within the Eurozone have been slow to catch up.

    After declining sharply in the 2000s, French market shares within the Eurozone were relatively stable between 2008 and 2013 before eroding once again. Furthermore, the ability of local producers to meet domestic demand, as measured by the import penetration ratio for goods and services, is another indicator of competitiveness that has also been slow to improve.

    Several reasons may be given to justify this continued poor export performance: the erosion of the French industrial base in the 2000s, The high concentration of the French export machine.

    Furthermore, the results of the Coe-Rexecode "competitiveness survey" conducted in 2017 suggest that French products suffer from a poor price-quality ratio.

  • France: Relative margin squeeze

    Margin squeeze is defined as the ratio of price competitiveness to cost competitiveness. A ratio above 100 implies faster growth in prices than in ULCs relative to the base year. Conversely, if the ratio is below 100, this means that ULCs have risen more quickly, and that exporters then had to squeeze their margins.

    France: Relative margin squeeze
  • Associative topics : Economics | France


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