French Economy Shrinks 0.1% in Third Quarter as Exports and Investment Slump

France's gross domestic product unexpectedly contracted by 0.1% quarter-on-quarter in the third quarter of 2026, falling short of consensus forecasts for a 0.1% expansion. The downturn followed zero growth in the second quarter and a 0.2% decline in the first quarter, marking the second contraction this year. The drop was largely fueled by a 1.7% slump in exports, which deducted 0.6 percentage points from headline GDP, alongside a 0.6% fall in investment. These declines outweighed a 0.4% increase in household consumption and a 0.4 percentage point contribution from inventories.