Italy: GDP contracts for fourth consecutive quarter in Q2
September 10, 2012
In the second quarter, GDP fell a seasonally and working-day adjusted 0.8% over the previous quarter, which was down from the 0.7% contraction reported in a preliminary estimate released by the National Statistics Office (ISTAT) on 7 August. The reading mirrored the 0.8% drop recorded in the previous quarter. The reading marked the fourth consecutive quarterly contraction in economic activity. On an annual basis, the economy shrank 2.6%, which was down from the 1.5% drop recorded in the previous quarter and marked, in fact, the largest drop recorded since Q4 2009. The quarterly contraction was driven by a drop in domestic demand, which, however, moderated the pace of decline compared to the previous quarter. Private consumption contracted 1.0%, slightly improving from the 1.1% drop recorded in Q1. In addition, fixed investment dropped 2.3%, which was up from the 3.6% fall recorded in the previous three-month period. Meanwhile, exports of goods and services rose 1.4% in Q2, which was below the 1.7% drop recorded in the previous quarter, while imports fell 8.2%, which came in above Q1's 9.3% drop. As a result, the external sector's net contribution to overall growth deteriorated from plus 0.9 percentage points in Q1 to plus 0.2 percentage points in Q2.
Author: Armando Ciccarelli, Head of Data Solutions