French economy 'headed for a wall' as GDP shrinks, finance minister warns
Summary
France’s economy contracted by 0.1% in the third quarter of 2026, while annual inflation rose to 3.4% in October. Finance Minister Roland Lescure warned that France could face serious financial trouble if parliament does not pass a budget to reduce the deficit.Key Facts
- Insee reported that GDP fell 0.1% from July through September.
- The economy had stagnated in the second quarter after shrinking 0.2% in the first quarter.
- Annual inflation rose to 3.4% in October, up from 3.1% in September.
- Household consumption grew 0.4%, while investment fell 0.6% in the third quarter.
- Foreign trade reduced GDP growth by 0.6 percentage points.
- Analysts said the figures put the government’s 0.5% growth forecast for 2026 at risk.
- Lescure is seeking parliamentary approval for a 2027 budget that includes billions of euros in spending cuts.
- Unions and the Yellow Vest movement called for nationwide protests on Saturday amid anger over living costs and inequality.
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