Italy: GDP contracts for fourth quarter in a row
August 7, 2012
In the second quarter, GDP plunged a seasonally and working-day adjusted 0.7% over the previous quarter, according to the first estimate released by the National Statistics Office (ISTAT) on 7 August. The reading marked a slight improvement compared both to the 0.8% contraction recorded in the previous quarter and market expectations of a 0.8% drop, in addition to representing a fourth consecutive decline in economic output. In annual terms, the economy fell 2.5% over the same quarter last year, which follows on a 1.4% drop seen in the first quarter and marked, in fact, the largest contraction recorded since Q4 2009. According to the government, the economy is expected to contract 1.2% this year and to grow a paltry 0.3% in 2013. The Bank of Italy, however, has a more pessimistic outlook and expects a 2.0% GDP contraction this year and a 0.2% drop in 2013.
Author: Armando Ciccarelli, Head of Data Solutions