Economy minister warns France could ‘hit the wall’ as new figures show GDP contraction

PARIS — France’s economy shrunk by 0.1% in the third quarter of 2026, according to fresh estimates from national statistics agency Insee, pushing the country closer to recession and further complicating the government’s efforts to stave off a debt-driven financial crisis . Economy and Finance Minister Roland Lescure said Friday that this summer’s extreme heat and spiking energy prices were responsible for the negative growth. In an interview with Franceinfo, he said the new figures give added urgency for lawmakers to pass the 2027 budget proposed by the government, which aims to bring the deficit down to 5% of gross domestic product next year with €43 billion in savings.