PARIS, Oct. 30 (Xinhua) -- France's gross domestic product (GDP) contracted 0.1 percent in the third quarter of 2026, according to preliminary data released Friday.
The decline came despite continued growth in final domestic demand excluding inventories. Household consumption accelerated, rising by 0.4 percent after a 0.2-percent increase in the second quarter, while government consumption grew by 0.3 percent, following a 0.4-percent increase.
Overall, final domestic demand excluding inventories contributed 0.1 percentage points to GDP growth, unchanged from the previous quarter, according to figures published by the French National Institute of Statistics and Economic Studies (INSEE).
The contribution of foreign trade to GDP growth turned negative in the third quarter, subtracting 0.6 percentage points from growth, compared with a positive contribution of 0.6 percentage points in the previous quarter. Exports fell by 1.7 percent, reversing a 2.8-percent increase in the second quarter, while imports remained almost unchanged, rising by 0.1 percent after a 0.9-percent increase.
INSEE added that France's consumer price index is expected to surge by 3.4 percent year on year in October, up from 3.1 percent in September.
Inflation is expected to accelerate mainly due to energy prices, which are set to rise for the fourth consecutive month, particularly because of higher gas and petroleum product prices.
"Growth has been absent for three consecutive quarters," the country's Economy and Finance Minister Roland Lescure said Friday in an interview with local broadcaster Franceinfo. "If we do not achieve the fiscal consolidation set out in the budget, we will hit a wall." ■