Economy of French Guiana

The economy of French Guiana maintains close ties with mainland France, relying on subsidies and imports. Key economic activities include the French space center at Kourou, fishing, and forestry. The region possesses extensive reserves of tropical hardwoods, primarily utilized by an expanding sawmill industry for export purposes. Agricultural cultivation is constrained to the coastal areas, where the majority of the population resides, with rice and manioc being the principal crops. French Guiana heavily relies on imports for food and energy. Unemployment, especially among younger demographics, remains a significant concern. School projects about the country are popular, particularly in Europe.

Top Sectors in French Guiana

Airport in French Guiana

French Guiana is served by Cayenne - Felix Eboue Airport, located in Matoury. Additionally, there are several airstrips in the department, situated in Camopi, Maripasoula, Ouanary, Saint-Georges-de-l'Oyapock, Saint-Laurent-du-Maroni, and Saul, totaling eleven hubs (four paved and seven unpaved). From the main airport, there are two daily direct flights to Paris (Paris Orly airport, with an average flight time of about 8 hours and 25 minutes from French Guiana to the capital and 9 hours and 10 minutes vice-versa), offered by Air France and Air Caraibes. Other destinations include Fort-de-France, Pointe-Ã -Pitre, Port-au-Prince, Miami, and Belem. The regional carrier Air Guyane Express also provides daily flights to Maripasoula and Saul, as well as more sporadic flights (mainly related to postal deliveries) to Saint-Georges-de-l'Oyapock and Camopi.

Architecture in French Guiana

The local architecture is characterized by its Creole, Amerindian and Bushinenge influences. The main towns contain predominantly Creole-style architecture, with some Western-style buildings and forts. In the communes with the black maroon populations one can see houses of bushinengue styles. And the Amerindian communes are recognized for their pre-colonial type carbets. Most of these buildings were designed with local materials, such as wood from the Amazonian forests and bricks made on site. These local architectures blend with contemporary style buildings.

Tour in French Guiana

The Tour of Guiana, formerly known as "Le Tour du Littoral" or "La Grande Boucle Guayanaise," is a cycling stage race that takes place mainly in French Guiana each year, occasionally crossing into neighboring countries. The race consists of nine stages, with a route connecting the main towns of the department: Cayenne, Kourou, and Saint-Laurent-du-Maroni. Established, it is organized by the Comite Regional de Cyclisme de la Guyane (French Guiana Cycling Committee). Since becoming international, the Tour of Guiana has gained importance and popularity, with its duration increasing over the years. Participation has expanded from a mostly French Guianan group in the early editions to include cyclists from more than 10 different nationalities.

French Guiana - Key Economic Indicators

Exports and Imports

Exports: French Guiana exports primarily revolve around raw materials and natural resources. Key export items include gold, shrimp, and timber. The total export value is estimated to be around $200 million annually.

Infrastructure

French Guiana has a developing infrastructure network, with a focus on improving connectivity within the region and to mainland France. The main roads connect major cities like Cayenne, Kourou, and Saint-Laurent-du-Maroni. The infrastructure includes the significant Felix Eboue Airport, which facilitates international travel. However, rural and remote areas still face challenges with road connectivity.

Balance of Trade

French Guiana has a trade deficit, with imports far exceeding exports. The trade imbalance highlights the region's dependency on imported goods and services. For instance, with exports valued at approximately $200 million and imports at $1.3 billion, the trade deficit stands at around $1.1 billion annually.

Fiscal Policy

French Guiana's fiscal policy is heavily influenced by mainland France. The region receives substantial subsidies and financial aid from the French government, which helps to cover its budget deficits and fund public services. Taxation policies are aligned with those of France, with standard French tax laws applying to income, corporate, and value-added taxes.

Monetary Policy

As an overseas department of France, French Guiana uses the Euro (€) as its currency. The European Central Bank (ECB) is responsible for monetary policy, including interest rates and money supply. This linkage ensures monetary stability and integration with the broader Eurozone economy.

Trade Agreements

French Guiana, being part of France, is included in all European Union trade agreements. These agreements facilitate trade with other EU member states and countries

Environmental Regulations

French Guiana follows strict environmental regulations as part of France and the European Union. These regulations are designed to protect the region's rich biodiversity and natural resources. Key areas of focus include the preservation of tropical rainforests, sustainable management of fisheries and forestry, and protection of endangered species. The regulatory framework ensures that any economic development activities are balanced with environmental conservation efforts.

Tax System in French Guiana

Tax System in French Guiana: French Guiana, as an overseas department of France, follows the French tax system. Here is a detailed look at various aspects of the tax system in French Guiana, along with relevant figures where applicable.
Capital Gains Tax: Capital gains tax in French Guiana is governed by French law. The standard rate for capital gains tax on securities is 30%, which includes both income tax and social contributions.
Corporate Tax Rate: The corporate tax rate in French Guiana follows the French corporate tax system. As of 2024, the standard corporate tax rate is 25%. Small and medium-sized enterprises (SMEs) may benefit from a reduced rate of 15% on the first €38,120 of taxable income.
Sales Tax: French Guiana applies the same Value-Added Tax (VAT) system as mainland France. The standard VAT rate is 20%. However, there are reduced rates for certain goods and services, such as a 10% rate for restaurants and a 5.5% rate for most food products and some other essentials.
Property Tax: Property taxes in French Guiana include both the taxe foncière (land tax) and the taxe d'habitation (residence tax). The rates vary based on the location and value of the property, but they generally align with rates applied in other parts of France. On average, the land tax rate is around 1-3% of the property's rental value, and the residence tax varies depending on local council decisions.
Payroll Tax: Employers in French Guiana are required to pay payroll taxes to fund social security. The total social security contributions for employers are approximately 45% of gross salaries, which include contributions to health insurance, family benefits, and pensions. Employees contribute around 22% of their gross salaries to social security.
Tax Deductions and Credits: French Guiana offers various tax deductions and credits similar to those available in mainland France. These include deductions for mortgage interest, child care expenses, and certain energy-saving home improvements. Tax credits are also available for research and development (R&D) activities and for investments in renewable energy.
Tax Compliance: Tax compliance in French Guiana is managed by the French tax authorities. The system is well-developed and includes modern online filing and payment systems. Efforts to ensure compliance include regular audits and penalties for non-compliance. The efficiency of tax collection in French Guiana benefits from the robust administrative infrastructure of the French government.
Tax Burden: The overall tax burden in French Guiana is similar to that in mainland France. This includes income taxes, social security contributions, VAT, and property taxes. For individuals, the tax burden can range from 0% to 45% of income, depending on the tax bracket. For businesses, the tax burden includes corporate taxes, payroll taxes, and VAT, leading to a comprehensive but manageable fiscal environment.

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