LIMOUSIN - Economy
An economic structure built on tradition and diversity
In 2000 Limousin contributed 1.0% of the GDP of metropolitan France, with 1.2% of the nation's population. This means that per capita GDP is substantially below the national average, and the region was fourth from the bottom in the ranking of the metropolitan regions. The GDP per inhabitant was 18 859 euro/inh in 2000: 23% below the national average and 9.4% below the average for the provinces.
Its biggest contribution was to France?s gross value added of the agricultural sector: 1.4%. To France?s gross value added of the industrial sector of Limousin contributed 1.0%, 1.2% to the construction sector, and only 0.8% to market services.
Broadly speaking, the principal features of the economy are low productivity and low labour costs. The region tends to lacks entrepreneurial spirit, with the percentage rate of start-ups being the lowest of all the regions in France: 8.5% compared to the average for the provinces of 11.0% in 2001. Nevertheless, the region is moving into the high technology sector with the creation of the ESTER technopole.
Widespread stock-raising
Agriculture took up 52% of the region's territory and produced 4.1% of its value-added in 2000. 65.6% of agricultural land was grassland in 2000. The acid soil and high-quality water resources have enabled Limousin to specialise in animal husbandry: 88% of farms are thus specialized. Agriculture is mainly geared to sheep rearing and even more so cattle rearing for meat, for which the region is reputed. The region is specialised in breeding: calves fed only from the milk of their mothers and young bovines exported to Italy to be raised for meat. Forestry is, after stock raising, the second most important activity in the agricultural sector. The region has few small farms, with holdings covering less than 5ha representing only 16.5% in 2000. 37.7% of holdings cover 50 or more ha.
The industry of the region, traditionally in manufacturing, is mainly made up of small and medium sized businesses. In 2001 businesses employing between 20 and 99 persons accounted for 81% of all businesses working in industry.
Industry accounted for 21% of the region?s value added in 2000, of which 45% of the industrial value added of the region was generated by the production of intermediary goods. Timber, water and leather, a by-product of stock-rearing, has allowed traditional sectors of activity to blossom. Today, these are confronted by competition from countries where the manpower is cheaper. This is especially the case of the footwear and porcelain industries that had made the region famous worldwide.
The construction industry accounted for 5.8% of the region's value-added.
The market sector is less developed in Limousin than in other regions of France. As a whole the market services sector produced 42.7% of the region's value-added, roughly three percentage points below the average for the provinces in 2000. Financial intermediation and real estate accounted for the highest share of value added of market services with 23%. Wholesale and retail accounted for 16% of gross value added of market services, above the national average. In Limousin non-market services account for a higher proportion (26.1%) of value added than in any the regions of metropolitan France, except Corsica.
Tourism is only a marginal activity, with the region representing only 0.7% of nights spent in hotels in 2000. It has the smallest number of hotel bedrooms of the whole of metropolitan France, and the second lowest number of hotels.
In 2001 there were 454 000 vehicles registered in Limousin, of which 83.8% were private cars. The number of private cars in 2001 increased by 6.0% compared to 1990. In 2000 the road network of the region had 589 km of national roads, and 165 km of motorway.
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