Investment and exports both lag! France's Q3 GDP unexpectedly contracts, making fiscal consolidation even harder.

Zhitong Finance APP has learned that amid multiple headwinds including soaring borrowing costs, violent protests, and political and budget uncertainty, the French economy unexpectedly contracted in the third quarter. Insee said that gross domestic product (GDP) fell 0.1% quarter-on-quarter in the third quarter, worse than economists' expectation of 0.1% quarter-on-quarter growth, due to continued declines in investment and a drop in exports as well. GDP in the third quarter also fell 0.1% year-on-year, worse than economists' expectation of 0.3% year-on-year growth.