French economy shrinks 0.1 percent in third quarter
Investment fell 0.6% and foreign trade shaved 0.6 percentage points off growth as France missed economists’ forecast, 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.
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65 Articles
After a fall in the first quarter, then stagnation, GDP expected to rise again fell by 0.1%. The economy has also been hit by inflation at the highest level since January 2024.
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Reformatorisch Dagblad
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.
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