Italy: GDP contracts in Q3
December 21, 2011
In the third quarter GDP contracted a seasonally and working-day adjusted 0.2% quarter-on-quarter, slightly worse than the 0.1% contraction expected by the market. The reading contrasted the 0.3% expansion recorded in Q2 and marked the first contraction since the first quarter of 2009. On an annual basis, the economy expanded 0.2%, below the 0.7% rise recorded in the previous quarter and market expectations of a 0.5% rise. The quarterly contraction was driven by the deterioration of domestic demand, which was mitigated by an improving contribution from the external sector. Private consumption contracted 0.2%, contrasting the 0.1% rise recorded in Q2, while fixed investment dropped an even larger 0.8%, down from the 0.1% increase recorded in the previous three-month period. Meanwhile, exports of goods and services rose 1.6%, up from the 1.0% rise recorded in the previous quarter, while imports contracted 1.1%, virtually in line with the 1.2% drop in Q2. As a result, the external sector's net contribution to overall growth rose from plus 0.6 percentage points in Q2 to plus 0.8 percentage points in Q3.
Author: Armando Ciccarelli, Head of Data Solutions