Italy: GDP drops for third consecutive quarter
May 15, 2012
In the first quarter, GDP plunged a seasonally and working-day adjusted 0.8% over the previous quarter, according to the first estimate released by the National Statistics Office (ISTAT) on 15 May. The reading marked a further deterioration compared to the 0.7% contraction recorded in the previous quarter and was worse than market expectations of a 0.6% drop. The reading marked a third consecutive decline, in addition to representing the largest drop since the first quarter of 2009. In annual terms, the economy fell 1.3% over the same quarter the previous year, which follows on a 0.4% drop in the fourth quarter and marked the largest contraction 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 1.5% GDP contraction this year and flat growth in 2013.
Author: Armando Ciccarelli, Head of Data Solutions