Italy: Italy mired deep in recession amid seventh consecutive GDP drop
May 15, 2013
In the first quarter, GDP dropped a seasonally and working-day adjusted 0.5% over the previous quarter (Q4 2012: -0.9% quarter-on-quarter), according to the first estimate released by the National Statistics Office (ISTAT) on 15 May. The contraction was broadly in line with the 0.4% drop expected by FocusEconomics panellists and marks a seventh consecutive decline in economic output, the longest such streak in at least 23 years. In annual terms, the economy fell 2.3% over the same quarter last year, which marks a slight improvement over the 2.8% drop seen in the fourth quarter.
The Bank of Italy expects a 1.0% contraction in GDP this year and a 0.7% rise in 2014. Panellists expect the economy to contract 1.5% in 2013, which is down 0.1 percentage points from last month's forecast, and to expand 0.5% in 2014.
Author: Armando Ciccarelli, Head of Data Solutions