French economy shrinks as inflation accelerates to 3.8%
France recorded an unexpected economic contraction in the third quarter while inflation reached its highest level since late 2023. Economy Minister Roland Lescure noted the economy remains at a standstill amid rising costs and falling exports.
France's GDP fell 0.1% in the third quarter while October inflation accelerated to 3.8%, leaving the economy at a standstill. The unexpected contraction missed analysts' forecasts for a 0.1% expansion, driven by an unprecedented mix of external and internal shocks. Economy Minister Roland Lescure warned that growth remains paralyzed by mounting pressure across domestic and foreign markets.
