French economy shrinks 0.1 percent in third quarter
Investment fell 0.6% and foreign trade cut 0.6 percentage points from growth, while household spending still 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.
129 Articles
129 Articles
French GDP fell by 0.1% in the third quarter, confirming the stagnation that France is now in. The failure of the economic policy of the President of the Republic is complete.
French finance minister: Economy 'headed straight for a wall'
Shrinking output and accelerating inflation have added to Paris' mounting financial troubles, official figures show France is "headed straight for a wall" unless it reins in its budget deficit, Finance Minister Roland Lescure has warned, as the country's economy contracts and inflation accelerates. Gross domestic product fell by 0.1% in the third quarter, following stagnation in the previous three months and a 0.2% decline at the start of the ye…
Household consumption accelerated to 0.4 per cent in the summer despite a contraction in France's GDP, and harmonised inflation rose to 3.8 per cent in October.
French GDP shrinks 0.1% as economy nears recession and budget doubts grow
France has seen no growth since the start of the year and GDP fell 0.1% between July and September. The government urges parties to pass the 2027 budget as its ability to reassure markets is in doubt. Analysis.
France's economy is shrinking, bonds are coming under pressure: how close the recession is and what ‘Mould' Finance Minister Lescure now warns.
leprogres.fr
On Friday, INSEE announced a decline in GDP in the third quarter of 2026. Clouds are rising above the French economy.
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