France economy shrinks 0.1% as minister warns of a...

Summary

• The France economy contracted 0.1 percent from July to September, and the finance minister warned on Friday of a wall ahead without a budget.
• Without the turnaround in that plan, he said, the France economy would hit a wall.
• For now, the France economy faces a hard winter, with weak growth, higher prices and tense politics all pressing on the government.

AI Generated Summary

The France economy contracted 0.1 percent from July to September, and the finance minister warned on Friday of a wall ahead without a budget.

Finance Minister Roland Lescure spoke one day before fresh protests across the country over living costs. Authorities warned of a very high risk of public disorder this weekend.

What the France economy data show

The statistics office Insee reported that gross domestic product fell from July to September. Output stood still in the second quarter, after a 0.2 percent drop in the first.

“For three quarters now, there has been no growth,” Lescure told a radio station. In his words, the French economy is at a standstill as of 2026.

The fresh decline leaves the euro area’s second-largest economy close to recession. Analysts had expected a small gain, so the number surprised markets.