Paris – The City of Light
Paris is the capital of France, and also the center of the French economy. It generates one-fifth of the national GDP in the region. The city’s GDP is approximately €850 billion in 2022, making it Europe’s 2nd richest city in Europe, after London (€879 billion). As GDP per capita, Paris ranks in the 12th position, with €51,664.54. The first five richest cities in Europe are Dublin, with €104,271.29 GDP per capita, Frankfurt, with €93,261.08 GDP per capita, Helsinki, with €87,577.05 GDP per capita, Milan, with €79,531.16 GDP per capita, and Stockholm, with €73,741.13 GDP per capita.
The city is home to 2,165,423 people (est. 2019), with a density of 21,000/km2 (53,000/sq mi). The urban population is estimated at 10,785,092 (est. 2017), with a density of 3,800/km2 (9,800/sq mi).
According to Insee, the metropolitan population (Île-de-France region) is estimated at around 12,21 million people (est. 2019), with a density of690/km2 (1,800/sq mi), making it one of the most populated metropolitan areas globally.
Economy of Paris
The service sector, especially corporate services, dominates the economy of Paris and the wider Île de France region, employing approximately four-fifths of the local workforce. The position of Paris as a major tourist and international conference center attracts the region of over 41 million visitors to the city each year. The region is also France’s premier industrial area and is characterized by many SMEs. More than two-thirds of the industrial sector comprises firms in high technology fields ranging from electronic manufacturing to the automotive and chemical industries. The Ile de France area is also a significant agricultural region, with farmland covering around half of the land.
Infrastructure of Paris
Paris and its surrounding area benefit from extensive, modern transport infrastructure. The region boasts two major international airports, offering flights to some 134 countries and twelve additional airports for light aircraft.
Orly International Airport is located just 14 kilometers to the south of the city, while Roissy, Charles de Gaulle Airport is 23 kilometers to the northeast. ParisAeroport.fr, the airport authority responsible for the region’s airports, has estimated over 105 million passengers (est. 2018) and more than 2.3 million tonnes of freight and mail passed through the two airports.
The high-speed TGV passenger trains connect Paris with hundreds of destinations throughout France and Europe. Via the TGV network, Brussels can be reached in less than ninety minutes, London in just over two and a half hours, Frankfurt in around three hours, and Barcelona in eight hours. The network also provides rapid connections between the cities’ two international airports.
The region also has an extensive road network with over 12,000 km (7,450 miles) of major roads and highways. Brussels can be reached in three hours by road, Frankfurt in 6 hours, and Barcelona in 12 hours.
Standard of Living in Paris
Paris is one of the best cities where to live in, but also one of the most expensive. The evaluation is based on 39 criteria such as political, social, economic, and environmental factors and personal safety, health, education, transport, and several other public services. The city scored a total of 101.5 points, compared to 106.5 points for the first placed city of Zurich. In the same report, Frankfurt was ranked sixth in the world with 105 points, Munich was tenth with 104.5 points, Brussels was fifteenth with 103.5 points, and London was ranked forty-first with 100 points. In terms of cleanliness, based on air pollution levels and the efficiency of waste disposal and sewage systems, Paris is positioned twelfth in the EU and eighty-fourth in the world. For the cost of living, the city is ranked as the fifth most expensive in the EU and seventy-fourth globally.
Business Costs in Paris
Office occupancy costs in Paris are much lower than London but higher than in most other European cities. In 2021, Paris’s total office occupancy cost was approximately €930 per meter squared per annum, compared with a cost of €1496.32 euros for London. The cost in Frankfurt, Munich, and Brussels was approx. €672, €414.4, and €275.52, respectively. The report included maintenance costs, property taxes, and rent. Prime industrial rents in Paris are lower than in many European cities. Paris rents averaged €80 per meter squared per annum, while rent in London, Heathrow was €213, rent in Frankfurt was €105, rent in Munich was €98, and rent in Brussels was around €60.
From 2022, the standard corporate tax rate is 25% on all profits. Individual taxes are based on both a progressive and share system, from 0% to 45%. The amount payable depends on the amount earned and the number of people part of the family (living in the same household).
The value-added tax rate in France is 20%.
A wage pact is known as the Salaire Minimum Interprofessionnel de Croissance (SMIC), which ensures workers are paid at least €10.52 per hour, or €1.539,42 EUR a month on the standard 35-hour workweek. Labor costs are relatively high for a European country – even higher than the United Kingdom’s minimum wage of £5.80 per hour, which converts to €6.63 per hour.