Italy: Economy enters technical recession in Q2
August 6, 2014
In the second quarter, GDP contracted a seasonally- and working-day adjusted 0.2% over the previous quarter, according to an advance estimate released by the National Statistics Office (ISTAT) on 6 August. The contraction followed the 0.1% decrease observed in the first quarter. Thus, the economy entered a technical recession. The reading contrasted the 0.1% expansion the market had expected.
In annual terms, the economy contracted 0.3% in Q2. The figure recorded the softest contraction since Q3 2011 and was an improvement over the 0.4% drop seen in the previous quarter.
Author: Dirina Mançellari, Senior Economist