Pandemics hit the world on every level of its existence. Be it health, businesses, social interaction, and established paradigms, no area was left unaffected. Speaking of the economy alone, the entire world came to a sudden halt, and major economies such as the US, Germany, China, France, the UK, etc., faced a decline of up t0 33% in their economic activities. France, however, displayed remarkable resilience against the economic onslaught where the decline was merely 17% in economic activity.
Though the decline has jeopardized the momentum the investors have not lost confidence in French economic potential. This confidence resulted in more than one thousand new FDI projects all over France. The major areas where FDI was made are logistics, research, technology, agriculture, information technology, etc. As of December 2021, the FDI has been responsible to create more than 2 million jobs in France.
If you are planning to expand your wealth by investment, you may consider the below areas.
Exchange Trade Funds (ETFs)
Through ETFs, investors can create a diversified pool of investments across many sectors. This is a low-risk investment with a stable return. ETFs differ from mutual funds as unlike the latter, ETFs can be traded anytime. The MSCI France Index Fund ETF is the primary ETF to invest in France. It includes almost all the French companies that are traded publicly.
Artificial intelligence (AI) & technology
France by way of collaboration with nations like Germany and the US has made splendid advancements in the field of AI. The AI-assisted healthcare system was developed recently in collaboration with the US with a sum of US$ 180 million. The startup known as Owkin consists of algorithms that will improve research and development of innovative and effective ways to treat cancer and other terminal diseases.
Another key area where French products are revered around the globe is armaments. Submarines, helicopters, jets, and other military equipment developed in the country are technologically superior to most countries in the world. France has the skills, material, and researchers at hand that can ensure that technological boundaries are continuously stretched.
Tourism
In 2018, nearly 90 million tourists visited France and 100 million are predicted to visit in 2021. These are extraterrestrial numbers. Naturally, these tourists create needs of all kinds; sanitation, maintenance, transport, accommodation, travel guides, clothing, photographers, and whatnot. You can have any skillset, some of them will surely be needed in France.
In short, the avenues to invest in France are only limited by your imagination. France is the 7th largest economy in the world, the largest in Europe, and probably the only country that houses the most gigantic conglomerates on the planet.
The reasons for France being perfect for foreign and local investment can be pinpointed to make it easier to understand. Firstly, the French are entrepreneurial by nature. You can easily find skilled and highly productive human resources here. Secondly, due to its healthy GDP of US$ 6 trillion, the government spends 2.2% annually on research and development. Hence innovation can be seen in every sector.
Thirdly, France is open to foreign investments. The policies are designed in a fashion that secures and safeguards investors’ interests and investments. Over the years the policies have either remained uniform or made more investor-friendly, regardless of the changes in political regimes.
Lastly, the welfare nature of the state ensures that the masses have the buying power to afford an enviable standard of living. Combined with the ease of doing business and access to global markets, France offers a complete package that promises sustainable returns.
Socialist tendencies
Some minor drawbacks of doing business in France are that the country tends to have a slight tilt towards socialist ideas. This reflects in rules like a 35-hour workweek instead of 40-hours elsewhere in Europe. Or the retirement age of 62 instead of 65, etc. These ideas however do not restrict competition as they are applicable across the board.
