Overview
- France’s national statistics office Insee reported that GDP fell 0.1% in the third quarter, a figure published on Friday that leaves the economy with three consecutive weak quarters and close to a technical recession.
- The shortfall was driven mainly by foreign trade, which subtracted about 0.6 percentage points from growth as exports of transport equipment plunged, with aerospace exports down sharply and transport-sector exports falling around 9.1%.
- Business demand weakened as investment (gross fixed capital formation) declined 0.6% and manufacturing output contracted 1.4%, with construction and many factory sectors showing broad losses.
- Economy Minister Roland Lescure said the data make passing the 2027 budget essential to restore confidence; the government’s plan targets a deficit near 5% of GDP and about €43 billion in savings to calm markets.
- Household consumption rose 0.4% in Q3 but inflation accelerated to roughly 3.4% in October, consumer confidence hit multi-year lows, and rising bond yields plus October street unrest raise the risk that weak growth will persist into year-end unless policy or a strong Q4 rebound changes momentum.