Italy: GDP drops for a fifth consecutive quarter
November 15, 2012
In the third quarter, GDP dropped a seasonally and working-day adjusted 0.2% over the previous quarter (Q2: -0.7% quarter-on-quarter), according to the second estimate released by the National Statistics Office (ISTAT) on 15 November. The contraction was smaller than 0.5% drop expected by the markets but still represents a fifth consecutive decline in economic output. In annual terms, the economy fell 2.4% over the same quarter last year, which mirrors the revised 2.4% drop (previously reported: -2.5% qoq) seen in the second quarter and marks the lowest reading since the last quarter of 2009. According to the government, the economy is expected to contract 1.2% this full 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