France's economy unexpectedly contracted by 0.1% in the third quarter of 2026 compared to the previous three months. Analysts had expected 0.1% growth, but data from the statistics agency INSEE showed the opposite trend. Instead of a slight expansion in business activity, the country experienced a quarterly decline. The main reasons were a reduction in business investments and a drop in exports of French goods. Exports fell by 1.7%, increasing pressure on the economy. At the same time, household spending did not collapse: consumption even rose by 0.2% during the quarter. However, such growth was not enough to compensate for the weakness of other GDP components. The gap between consumer and business behavior illustrates the nature of the slowdown. The population continued to slightly increase spending, while companies cut investments and export sales dropped. Therefore, the negative quarterly result stems primarily from investments and foreign trade, rather than a decrease in spending by French families. ΞKONOMICON