French economy shrinks 0.1 percent in third quarter
Investment fell 0.6% and exports weakened, while household consumption rose 0.4%, official data showed.
- 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.
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The alarm bell for the French economy was sounded by Economy Minister Roland Leskier. With French GDP falling by 0.1% in the third quarter of 2026, (after remaining stagnant in the second and decreasing by 0.2% in the first) and with the French National Assembly currently unable, due to the lack of a government parliamentary majority, to approve the draft state budget for 2027, French Economy Minister Roland Leskier warned today that there is a …
France's growth has just returned to the red. GDP fell by 0.1% in the third quarter, after stagnating in the spring and already falling at the beginning of the year. France is not yet...
Economy recedes by 0.1 per cent in the third quarter and shortens the government's room for manoeuvre in the midst of protests
According to provisional data from INSEE, the acceleration of homologous inflation in October was mainly due to the rise in gas and oil prices.
The French economy contracted in the third quarter of the year, intensifying concerns about the level of government debt in a scenario of persistent political paralysis. Exclusive material for subscribers. To have full access, access the link of the subject and register.
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