Italy: Economy contracts in Q1
May 15, 2014
In the first quarter, GDP contracted a seasonally and working-day adjusted 0.1% over the previous quarter (Q4: +0.1% quarter-on-quarter) according to an advance estimate released by the National Statistics Office (ISTAT) on 15 May. The reading contrasted the 0.2% expansion the market had expected. In annual terms, the economy contracted 0.5% in Q1, which marked an improvement over the 0.9% drop seen in the previous quarter.
The Bank of Italy projects a 0.7% expansion in GDP in 2014 and a 1.0% expansion in 2015. Panelists see the economy growing 0.6% in 2014, which is up 0.1 percentage points from last month's forecast. For 2015, panelists expect the economy to expand 1.1%.
Author: Dirina Mançellari, Senior Economist