FRANCE Economic Trends in Regions

Regions and Cities at a Glance 2018 – FRANCE http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions 2016 2000 GDP per capita in USD PPP Ratio 4 65 000 Highest region Small regions Large regions (TL3) (TL2) 60 000 Île-de-France 55 000 62 387 USD 3 50 000 45 000 France 40 000 37 171 USD 2 35 000 30 000 Lowest region

25 000 Hauts-de-France 1 20 000 29 083 USD 2000 2005 2010 2016

Country (number of regions considered) The regional gap in GDP per capita increased in France over the last sixteen years. The faster economic growth of Île-de-France drove this trend. Since 2012, GDP per capita in Île-de-France has grown 0.55 percentage points per year faster than in Hauts-de- France, the region with the lowest GDP per capita. In 2016, France had the tenth highest regional disparities in GDP per capita among 30 OECD countries with comparable data. Île-de-France is not only the French region with the highest productivity levels, but also the region with the highest productivity growth in the country – 1.2% per year over the period 2000-16. As a consequence, there has been no convergence between French regions in terms of labour productivity since 2000. Youth unemployment is above the OECD average of 15.1% in all regions, ranging from 15.7% in Auvergne-Rhône-Alpes to 27.6% in Hauts-de-France.

Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17

GDP per worker in USD PPP rate (%) 40 Highest rate 130 000 Île-de-France: highest 35 Hauts-de-France 120 000 productiv ity in 2016 and 27.6% highest av erage annual 30 110 000 France grow th ov er 2000-16 25 100 000 (+1.2% annually ) 22.4% 20 90 000 Lowest rate France Bourgogne-Franche-C.: OECD 80 000 low est productiv ity 15 Auvergne-Rhône-Alpes 70 000 grow th (+0.2% annually) 10 15.7% 60 000 5 2000 2005 2010 2016 2007 2012 2017 Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); France is composed of 13 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010).

Updated the 5th of March 2019 Differences in well-being across regions

Top region Bottom region Île-de-France Regions (France métropolitaine)

Corsica Île-de-France

Brittany

top top 20% Île-de-France Île-de-France Brittany Corsica Brittany

(1 to 402) to (1 Brittany Brittany

Pays de la Loire Hauts-de-

middle middle 60% Hauts-de-France France Normandy Corsica Centre - Centre - Val de Loire Île-de- Val de Loire Île-de- Ranking Ranking OECD of regions Corsica France Corsica France

Corsica bottom bottom 20%

Safety Community Access to Health Environment Housing Life Civic Jobs Income Education services Satisfaction Engagement Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

Eight French regions rank in the top 20% of OECD regions in terms of health, with residents in the capital region having the highest life expectancy in the country and one of the highest in the entire OECD. The largest regional disparities are observed for safety, with Corsica being in the bottom 25% of the OECD regions and Brittany in the top 20%. On the other hand, Corsica ranks first among the French regions in community and self-evaluation of life satisfaction.

The top performing regions in France fare better than the OECD median region for all the well-being indicators, except for employment rate. In the regions with the worst outcomes, the unemployment rate is 5 percentage points higher and the employment rate 8 percentage points lower than the OECD median region, respectively.

Country OECD median French regions Average region Top 20% Bottom 20% Safety Homicide Rate (per 100 000 people), 2016 1.4 1.3 0.7 1.4 Community Perceived social netw ork support (%), 2013 92.3 91.4 94.3 90.4 Access to services Households w ith broadband access (%), 2017 79.0 78.0 86.6 75.0 Health Life Expectancy at birth (years), 2016 82.7 80.4 83.9 81.4 Age adjusted mortality rate (per 1 000 people), 2016 6.8 8.1 6.1 7.2 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 13.3 12.4 10.6 15.9 Housing Rooms per person, 2016 1.7 1.8 1.9 1.5 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 6.7 6.8 6.9 6.5 Civic engagement Voters in last national election (%), 2017 or lastest year 77.8 70.9 82.3 78.2 Jobs Employment rate 15 to 64 years old (%), 2017 63.5 67.7 66.9 60.2 Unemployment rate 15 to 64 years old (%), 2017 9.6 5.5 7.4 11.1 Income Disposable income per capita (in USD PPP), 2016 20 480 17 695 23 986 18 758 Education Labour force w ith at least upper secondary education (%), 2017 82.8 81.7 86.1 80.6 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); France is composed of 13 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 UnitedFrance States OECD average

people people in cities outside cities people 36% 39% with population 30% people in cities 66.5 million above 500 000 1.2 billion outside cities 55% with population people - 64% people - 70% above 500 000 live in cities live in cities people in cities with 6% population between 11% 50 000 and 250 000 9% people in cities with 14% people in cities with population between population between people in cities with population 50 000 and 250 000 250 000 and 500 000 between 250 000 and 500 000 Source: OECD Metropolitan Database. Number of cities: 85 in France and 1 138 in the OECD.

In France, 64% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 39% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16

France OECD average % France OECD average % 80 80 73% 68% 70 63% 70 58% 60 52% 55% 60 45% 50 50 39% 40 40 30

30 areas 20 20 Paris

10 327metropolitan 10 0 0 1 2 % of national % of national % of national All metropolitan areas Largest contributor GDP employment population Metropolitan areas in France accounted for 52% of national GDP and 45% of employment. Between 2000 and 2016, they generated 73% of national GDP growth, with the metropolitan area of Paris alone accounting for 45% of such growth. In terms of GDP per capita, Paris ranks among the 20% richest among the 327 OECD Metropolitan areas. In OECD countries, Lille and Marseille are among the 25% of metropolitan areas with the highest air pollution, as measured in terms of people’s exposure to PM 2.5. OECD Metropolitan areas ranking Cities with a population of over 500 000

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 15 in France compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019

Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

France 00 OECD average

Other 27% 11 15% Other Economic affairs 19% 22 14% Economic affairs

Social protection 19% 33 14% Social protection

General public services 19% 44 14% General public services

Education 15% 55 25% Education

Health 1% 66 18% Health Subnational expenditure per capita: USD 4 607 77USD 6 817

Subnational government expenditure amounts to USD 4 607 per capita in France compared to an OECD average of USD-6 817. In France, this is equivalent to 19.8% of total public expenditure and to 11.1% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. The function ‘Other’ (housing and community amenities, recreation, culture and religion; environment; public order and safety) and economic affairs are the two largest spending items for subnational governments in France: together they represent 46% of subnational expenditure compared to 29% in the OECD area. In France, 55.2% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%. Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita France OECD average 1 600

1 400 1 200 Total public investment Total public investment 1 000 USD 1 433 per capita 3.5% of GDP USD 1 278 per capita 800 3.0% of GDP

600 Subnational government Subnational government 400 investment investment USD 792 per capita USD 727 per capita 200 55.2% of public invest. 56.9% of public invest. 0

Source: OECD Subnational Government Structure and Finance Database.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019