RALUMO · Euronews
French economy stalled in the third quarter amid budget uncertainties and GDP decline
The French economy recorded a 0.1% contraction in gross domestic product in the third quarter, confirming the lack of growth since the beginning of the year. Pressure on financial markets and rising inflation complicate parliamentary approval of the 2027 budget bill.

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According to data released by Insee and reported by the broadcaster Euronews, France's gross domestic product contracted by 0.1% between July and September. The result follows the stagnation recorded in the second quarter and the 0.2% decline in the first three months of the year, confirming the overall lack of economic growth since the start of the year.
The decline in production activity weighed heavily on the overall figure, despite a 0.4% increase in household consumption. The transport equipment sector suffered a 3.5% drop, dragged down by aerospace falling by 4.5% and automotive down 1.5%, while the agri-food sector decreased by 1.5%.
In this context, annual inflation rose to 3.4% in October, compared to 3.1% recorded in September. On the government bond front, the ten-year yield stood at 4.9%, after exceeding 5% the previous week, while the spread compared to German yields is around 1.55 percentage points.
Minister of Economy and Finance Roland Lescure described the production situation as stalled, urging approval of the 2027 budget to avoid serious deadlocks. To overcome the lack of a majority, the executive is considering using Article 49.3 of the Constitution or using ordinances, a procedure never used for a finance bill in the Fifth Republic.
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Euronews · Updated: 31.10.2026 07:00 (Europe/Rome). Open official source ↗