French economy 'headed for a wall' as GDP shrinks, finance minister warns

The French economy contracted in the third quarter, data showed Friday, and could be "headed for a wall" if the government is unable to get a deficit-reducing budget passed soon, the finance minister warned. Gross domestic product shrank by 0.1 percent in the three months to September, the national statistics office Insee said, amid deepening concerns about the state of public finances and growing political tensions ahead of presidential elections next spring. The decline came as inflation accelerated to 3.4 percent on an annualised basis in October from 3.1 percent in September, the fastest rate since January 2024, Insee said. The French economy had already stagnated in the second quarter after contracting by 0.2 percent in the first. "For three quarters now, there has been no growth," Finance Minister Roland Lescure told France Info radio. "The conclusion to be drawn from all this is that, as of 2026, the French economy is at a standstill," he said. "France is not heading toward a crisis. But if we fail to achieve the turnaround outlined in the budget, we are headed straight for a wall." Watch moreFrance unveils cost-cutting budget amid protests Insee calculated that production o...