French economy shrinks 0.1 percent in third quarter
Investment fell 0.6% and foreign trade subtracted 0.6 percentage points from growth, while household consumption rose 0.4%, Insee said.
- France's economy contracted 0.1% in the third quarter, according to statistics agency INSEE released Friday, missing economists' expectations of 0.1% growth for the eurozone's second-largest economy.
- Declining investment and weakened exports drove the contraction during the July-September period, as gross fixed capital formation fell and foreign trade made negative contributions to growth.
- Rising borrowing costs, political instability, and violent protests weighed on the economy. Budgetary uncertainty from an underwhelming 2027 budget plan last month continues to cloud the outlook.
- The contraction defied market expectations of modest growth, revealing fragility in France's recovery. Mounting fiscal pressures and political uncertainty now weigh heavily on business confidence and investment.
- Persistent high borrowing costs and social unrest compound concerns over France's economic resilience. These pressures add to mounting fiscal challenges as the eurozone's second-largest economy faces difficult decisions ahead.
38 Articles
38 Articles
The French economy contracted slightly in the third quarter. According to a preliminary estimate by the French statistics agency Insee, the contraction amounted to 0.1 percent compared to the previous three months. The disappointing figure comes on top of the significant unrest over the high French national debt, political tensions, and the violent protests in the country recently.
French economy unexpectedly contracts as exports slump in third quarter
The French economy experienced a contraction of 0.1% in the third quarter due to declining exports. Exports fell significantly, particularly in transport equipment, which had previously shown strong growth. Investment, as indicated by gross fixed capital formation, also continued to drop, extending previous declines. Household consumption, however, showed an increase, driven by electric vehicle purchases and a rebound in energy consumption.
The Minister of Economy said on Friday that "it's three quarters since growth is not on track." A statement that comes at a time when INSEE announced a 0.1% decline in GDP in the third quarter of 2026. Roland Lescue calls for a compromise in Parliament around a budget that will allow us to start a "retirement" of the accounts. - "The French economy is at a standstill" and "will go into the wall" without budgetary recovery, says Roland Lescue (Ec…
Invited to comment on the figures of growth, the Minister of Economy must have seen the atony of French production on Friday 30 October.
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PARIS (ANP/BLOOMBERG) - The French economy contracted slightly in the third quarter. According to a preliminary estimate by the French statistics agency Insee, the contraction amounted to 0.1 percent compared to the previous three months. The disappointing figure comes on top of the major unrest over the high French...
"It's been three quarters since growth has not been on track," he estimated on France Info. According to the data published on Friday by INSEE, France's gross domestic product (GDP) fell by 0.1% in the third quarter, after stagnating in the second quarter and falling by 0.2% in the first. "The conclusion of all this is that in 2026, the French economy is at a standstill," summarized Mr. Lescure. This situation is the result of a "unprecedented c…
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