In brief
France’s gross domestic product fell 0.1% in the third quarter of 2026, ending a streak of growth. Household consumption rose 0.4% and public spending grew 0.3%, but a 1.7% drop in exports and a flat rise in imports pushed the economy into contraction. Inflation is forecast to climb to 3.4% year‑on‑year in October, driven by higher energy costs.
France’s economy fell 0.1 percent in the third quarter of 2026, ending a run of growth that had stretched for three quarters. The preliminary data were released by the French National Institute of Statistics and Economic Studies (INSEE) on Friday and were reported by Xinhua.
The contraction was mainly pushed back by a sharp decline in exports, which slipped 1.7 percent after rising 2.8 percent in the second quarter. Imports stayed almost flat, gaining only 0.1 percent after a 0.9 percent rise in the previous period.
On the domestic side, household consumption accelerated, up 0.4 percent in Q3 after a 0.2 percent increase in Q2. Government consumption grew 0.3 percent, following a 0.4 percent rise in the earlier quarter.
Final domestic demand excluding inventories contributed 0.1 percentage point to GDP growth, the same level as in the previous quarter. The contribution of foreign trade, however, became negative, subtracting 0.6 points from growth versus a positive 0.6 points in Q2.
"Growth has been absent for three consecutive quarters," Economy and Finance Minister Roland Lescure said in an interview with Franceinfo. "If we do not achieve the fiscal consolidation set out in the budget, we will hit a wall."
An inflation forecast from INSEE projects a rise to 3.4 percent year‑on‑year in October, up from 3.1 percent in September. The increase is expected to be driven mainly by higher energy prices as gas and petroleum costs rise for a fourth straight month.
Trading Economics models predict France’s GDP growth rate will settle at 0.10 percent by the end of the quarter, essentially flat with the preliminary contraction reported by Xinhua.
These figures come amid broader concerns about the country’s fiscal trajectory and the effectiveness of its consolidation plan, as warned by Minister Lescure.
Overall, the data suggest France’s economic activity is under pressure, with export woes offset only partially by stronger domestic demand.