In brief
France's GDP contracted 0.1% in Q3 2026, according to preliminary INSEE data. Household and government consumption offset a sharp 1.7% fall in exports, while imports barely rose. Inflation is projected to climb to a 3.4% year‑on‑year rate in October.
France recorded a 0.1% contraction in its gross domestic product in the third quarter of 2026, according to preliminary estimates released by the National Institute of Statistics and Economic Studies (INSEE) and reported by Xinhua on October 30.
Household consumption accelerated, climbing 0.4% after a 0.2% rise in the second quarter, while government consumption grew 0.3% following a 0.4% increase earlier in the year.
Final domestic demand excluding inventories contributed 0.1 percentage points to GDP, unchanged from the preceding quarter. However, the foreign‑trade component turned negative, subtracting 0.6 percentage points from growth compared with a 0.6‑point gain in the second quarter.
Exports fell 1.7%, reversing a 2.8% rise in Q2, a decline that Global Banking & Finance highlighted was largely driven by a slump in aerospace transport equipment sales. Imports remained almost flat, rising just 0.1% after a 0.9% increase.
INSEE forecasts the consumer price index to surge to 3.4% year‑on‑year in October, up from 3.1% in September, largely due to rising energy prices.
Economy and Finance Minister Roland Lescure warned that “Growth has been absent for three consecutive quarters,” and that failing to meet fiscal consolidation goals could create a “wall.”
“Growth has been absent for three consecutive quarters,” the minister said. “If we do not achieve the fiscal consolidation set out in the budget, we will hit a wall.”
Roland Lescure spoke to the local broadcaster Franceinfo in an interview following the release of the figures.
