French economy shrinks 0.1 percent in third quarter

France's economy contracted by 0.1% in Q3 2026, raising concerns about public finances and political tensions ahead of elections. Inflation rose to 3.4%, complicating growth forecasts. Finance Minister Lescure warned of a potential crisis if budget reforms fail. Household consumption increased slightly, but investment and foreign trade negatively impacted GDP. The government's high debt and spending plans have led to rising bond yields and public unrest, with protests planned against the cost of living.