Portrait of the Regions - FRANCE - PICARDY - Economy

Portrait of the Regions - FRANCE - PICARDY - Economy

PICARDY - Economy

In 2000 Picardy accounted for 2.5% of the GDP of France. The GDP per inhabitant (19 031 Euro/inh) was 22% below the national average, and 8% below the average for the provinces. The region's biggest contribution was to the nation's agricultural value added, accounting for 4.3%. In industry, the contribution of the region represented 3.4% of France's gross value added of the industrial sector. The region's contribution to other branches was lower: 2.5% of France's gross value added of the construction sector, and only 2% to market services.

The economic apparatus of the region is characterised by the importance of industry and large-scale farming. Industry accounts for 28% of Picardy's value added, compared to 21% for France as a whole. Agriculture accounts for 5% of Picardy's value added, compared to 2.8% for France as a whole.

The industrial structure of Picardy was developed in two distinct phases: the first now ancient history, with a widespread system of small and medium-sized businesses in traditional industries - textiles and clothing, glassware, and metalworking. This wave of industrialisation was most marked in the Aisne and Somme départements. The second wave of industrialisation took place with the industrial boom of the post-war period and the decentralisation from Paris of national and, in particular, international groups. The industrial sectors concerned by this development were rubber, chemicals, automobile engineering and industrial machinery.

The main sectors of industry today are industrial machinery and metalworking, plastic, and the agri-food industry. Like the other regions of the Paris Basin, the industrial structure is under very much under the control of large French or foreign concerns (e.g. Goodyear, Colgate-Palmolive, Bosch, Nestlé). These are very present over nearly all the region, in the rural as well as urban areas. Only Vimeu, a rural area located south of Abbeville makes the difference with many independent SMEs there, specialised mainly in metalworking (taps, keylocks).

Medium-sized companies dominate Picardy's industry

Medium-sized companies (employing between 100 and 499 people) dominate Picardy's industry. In 2001 they accounted for a quarter of all companies working in industry, this is highest proportion in France, and employed nearly half (48.3%) of all employees working in the industrial sector of Picardy. Compared to other regions, Picardy has the lowest the proportion of small establishments (employing between 20 and 49 employees), accounting for only 50.5% of all industrial establishments of the region.

In 1999 23% of the regions' industrial establishments belonged to companies of which at least 20% of the capital was owned by foreign concerns.

In 2000, the production of intermediate goods accounted for nearly half (49%) of the region's industrial valued added, capital goods for 17%, consumer goods for 15% and the agri-food industry for 14%.

Picardy's agriculture is highly efficient and diversified

Due to its highly productive large-scale farms the agricultural sector of the region is one of the most productive of France, and indeed Europe. Notably, Picardy contributes more than a third of the nation's beet production, more than a quarter of potato production, and nearly 20% of pulses (peas, green beans).

60% of the agricultural land is arable; nearly all of it is used for growing grain. Picardy is France's second biggest grain producer, after the Centre region, accounting for 8.4% of total production in 2000. Picardy is the second biggest producer of the country's wheat (12.2%) and is the leading protein crop producer with 19.5% of the nation's production.

The size of the farms is the second largest in France, with the average size of a farm covering 80 ha, and 55% of the holdings covering 50 or more ha.

Distributive trades and other market services represent 41.4% of the region's value added compared to 51.6% on the national scale in 2000. But still the structure of the region's economy is moving very slowly towards the tertiary sector. In 1995 market services accounted for 39.8%.

The region's rural character and many types of countryside (ranging from sea-side to river valleys to wetlands), together with its historical heritage, are conducive to short-trip tourism. This is why in terms of tourist accommodation capacity and overnight stays, tourism appears as only a marginal activity. Picardy has the fewest number of hotels in metropolitan France, and the second fewest number of bedrooms. Nights spent in hotels the region accounted for only 1.3% of total nights in hotels in France in 2000. Picardy has very few camping sites. The region also has the lowest number of 'gites' (cottages) for rent: 310 in 2000.

In 2001 there were over 1 million vehicles registered in Picardy, of which 85.6% were private cars. The number of private cars in 2001 increased by 11.4% compared to 1990. In 2000 the road network of the region had 1 143 km of national roads, and 451 km of motorway.

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This text, finalised in March 2004, is based on the information published by INSEE France on the CD-Rom « La France et ses régions » in 2003.