France economy at a glance

Latest figures for France: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open France on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	3.8%	October 2026	3.4% September 2026
Core inflation (excluding food and energy)	2.0%	October 2026	1.8% September 2026
Real GDP growth (year on year)	−0.1%	Q3 2026	0.5% Q2 2026
Policy rate (European Central Bank)	2.50%	November 2026	2.50% October 2026
Unemployment rate	8.5%	September 2026	8.3% August 2026
10-year government bond yield	4.90%	October 2026	4.48% September 2026
Manufacturing PMI (HCOB / S&P Global France Manufacturing PMI (final))	49.5	October 2026	50.6 September 2026
Retail sales (year on year)	2.8%	September 2026	3.1% August 2026
Industrial production (year on year)	0.4%	August 2026	−0.9% July 2026
Wages (year on year)	1.7%	Q2 2026	1.6% Q1 2026
House prices (year on year)	−0.8%	Q2 2026
Stock market (CAC 40)	8,205	November 2026	+1.0% over 12 months

Questions and answers

What is the inflation rate in France?

France's annual inflation rate was 3.8% in October 2026, up from 3.4% in September 2026.

What is the interest rate in France?

The European Central Bank deposit facility rate is 2.50% (as of November 2026). The next rate decision is due on 17 December 2026.

How fast is France's economy growing?

France's real GDP grew −0.1% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 0.4% in 2026 and 0.7% in 2027.

What is the unemployment rate in France?

France's unemployment rate was 8.5% in September 2026, up from 8.3% in August 2026.

What is France's 10-year government bond yield?

France's 10-year government bond yield averaged 4.90% in October 2026.

How much government debt does France have?

France's government debt is about 116.0% of GDP (latest annual figure), with a budget deficit of 5.1% of GDP.

What is France's credit rating?

France's sovereign credit ratings: S&P A+, Moody's Aa3, Fitch A+.

What is the VAT rate in France?

France's standard VAT rate is 20% (2026 rules).

What is the corporate tax rate in France?

France's corporate income tax rate is 25.8% (2026 rules).

Who leads France?

France is led by President Emmanuel Macron (head of state); Prime Minister Sebastien Lecornu (head of government). Next election: Presidential election, first round 18 April 2027 (runoff 2 May 2027); Macron cannot run.

Outlook

The IMF (Oct 2026 WEO) sees France growing only about 0.4% in 2026, the weakest of the big euro economies, as weak household spending, tighter fiscal policy and high energy costs weigh on output. The main downside risks are failure to pass a credible 2027 budget, renewed rating downgrades and a further widening of the OAT-Bund spread ahead of the April 2027 presidential election; the upside would be a calmer budget compromise and lower energy prices if the Middle East conflict eases.

Why France matters for the world economy

France is the euro area's second-largest economy and its biggest sovereign borrower after Italy, so a disorderly rise in OAT yields, now above Italian BTP yields, is the main channel through which it can tighten financial conditions across the bloc and test the ECB's crisis tools. French banks are large holders of domestic and periphery debt, and a fiscal or political shock would hit Belgium, Italy and Spain through spreads and bank funding. In the real economy France matters through aerospace (Airbus supply chains in Germany, Spain and the UK), luxury goods with heavy exposure to Chinese and US demand, and nuclear power exports to neighbouring grids. Politically, a 2027 RN victory would put EU budget contributions, Ukraine aid and Green Deal rules in question.

Politics

Lecornu's minority government, dependent on Socialist abstention since late 2025, is trying to pass the 2027 budget with a deficit goal of about 5% of GDP, but the far-right and far-left opposition are unlikely to back savings. Weeks of school protests turned into nationwide cost-of-living riots on 17 Oct 2026, leading to at least 2,400 arrests and targeted night curfews in Paris, Lyon and Marseille. Macron's approval is at a record-low 15%, and with the RN (Le Pen or Bardella) leading the 2027 race, the 10y OAT yield briefly topped 5% on 21 Oct, about 160bp over Bunds and above Italy's. Moody's kept France at Aa3 with a negative outlook on 23 Oct, but French fiscal politics remain a key euro-area risk.

System: Unitary semi-presidential republic.

Economy and taxes

GDP: US$3,366 billion
Population: 69.1 million
Government debt: 116.0% of GDP
Budget balance: −5.1% of GDP
Current account: −0.4% of GDP
Exports: 33.4% of GDP
Main exports: Aircraft and aerospace parts, machinery, pharmaceuticals, chemicals and cosmetics, wines and spirits, motor vehicles and parts, agri-food
IMF growth forecast: 0.4% in 2026, 0.7% in 2027
IMF inflation forecast: 2.4% in 2026, 2.2% in 2027
Currency: EUR
Freelancer tax: A self-employed person earning the average wage (EUR 44,316 a year) pays about 37.3% of it in income tax and social contributions (2026 rules)
Top income tax rate: 55.4%
Gold reserves: 2,437.0 tonnes (July 2026)
Energy self-sufficiency: 51% (2024)

Recent news

4 November 2026 National Assembly rejects the revenue half of the 2027 budget by 458 votes to none LCP
After weeks of amendments left a text nobody backed, deputies threw out the revenue part of the 2027 budget, so the government's original bill now goes to the Senate. The budget minister said the amended version would have raised the deficit to 5.9% of GDP from the planned 5%.
31 October 2026 Third day of cost-of-living protests draws 320,000 as night curfews spread AFP (via Bourse Direct)
Authorities counted about 320,000 marchers nationwide on 31 October, down from 410,000 a week earlier. Most marches were calm, but clashes broke out in Paris and Marseille, night curfews in parts of Paris are spreading to other cities, and students plan more school and university blockades.
30 October 2026 French economy shrinks 0.1% in the third quarter as exports fall INSEE
INSEE's first estimate shows GDP fell 0.1% in the third quarter after no growth in the second. Household spending picked up, but exports dropped 1.7% and investment fell again, mainly in construction, so trade knocked 0.6 points off growth.
30 October 2026 French inflation climbs to 3.8% in October as gas and fuel costs rise INSEE
France's harmonised inflation rate rose to 3.8% in October from 3.4% in September, INSEE's flash estimate shows. Energy prices were 24.1% higher than a year earlier, led by gas and petroleum products, and services inflation also picked up, to 2.7%.
27 October 2026 French household confidence falls to its lowest level since 2013 INSEE
INSEE's household confidence index dropped five points to 80 in October, far below its long-run average of 100 and the weakest reading since June 2013. Households were much gloomier about their finances, and fears of rising unemployment grew.
23 October 2026 Moody's holds France at Aa3 with a negative outlook, defying downgrade fears AFP via Bourse Direct
Most economists had expected a cut to A1. Moody's said the rating assumes a deficit-cutting 2027 budget is adopted and social tensions ease, and it sees the deficit falling only to 5.2% of GDP next year from 5.4%. S&P's next review is on 27 November.

Headlines and summaries are compiled daily from the linked reports with AI assistance.