Shrinking output and accelerating inflation have added to Paris’ mounting financial troubles, official figures show

France is “headed straight for a wall” unless it reins in its budget deficit, Finance Minister Roland Lescure has warned, as the country’s economy contracts and inflation accelerates.

Gross domestic product fell by 0.1% in the third quarter, following stagnation in the previous three months and a 0.2% decline at the start of the year, the national statistics agency reported on Friday. Annual inflation climbed to 3.4% in October from 3.1% in September, its highest level since January 2024.

Lescure also described the economy as being “at a standstill,” underscoring the mounting financial challenges facing President Emmanuel Macron’s government.

The downturn extended across key sectors. Exports dropped 1.7%, largely due to weaker overseas aerospace sales, while investment fell 0.6%.…