Italy: GDP drops for sixth consecutive quarter
February 14, 2013
In the fourth quarter, GDP dropped a seasonally and working-day adjusted 0.9% over the previous quarter (Q3: -0.2% quarter-on-quarter), according to the first estimate released by the National Statistics Office (ISTAT) on 14 February. The contraction was larger than 0.6% drop expected by the market and represented a sixth consecutive decline in economic output. The reading marked, in fact, the worst quarterly performance since the first quarter of 2009. In annual terms, the economy fell 2.7% over the same quarter the year before, which marks a deterioration over the 2.4% drop seen in the third quarter.
In the full year 2012, GDP contracted 2.2% (2011: +0.6%), broadly in line with the 2.1% contraction expected by the FocusEconomics Consensus Forecast. The Bank of Italy expects a 1.0% contraction in GDP this year and a 0.7% rise in 2014.
Author: Armando Ciccarelli, Head of Data Solutions