Reuters reports that Italy’s economy shrank 12.4% in the second quarter from the previous three months, preliminary data showed on Friday, as activity nosedived during the coronavirus pandemic, but the fall was less severe than many analysts had predicted.
The quarterly slump in gross domestic product (GDP) in the euro zone’s third largest economy was “unprecedented”, national statistics bureau ISTAT said.
On a year-on-year basis, second quarter GDP tumbled 17.3%, ISTAT said. Analysts polled by Reuters had predicted a 15.0% contraction quarter-on-quarter and an 18.7% drop year-on-year.
All segments of the economy suffered, ISTAT said, without giving details.
ISTAT also revised down its readings for the first three months of 2020 to give a quarterly drop of 5.4% and a 5.5% fall against the same period a year ago. These were previously given as 5.3% and 5.4% respectively.
Italy has been one of the countries hardest hit in Europe by Covid-19, registering more than 35,000 deaths since the contagion came to light in late February. Looking to halt the spread, the government introduced rigid restrictions on trade and travel on March 9, forcing most businesses to close. The lockdown was only gradually eased from May 4 and much of the economy is still hurting.
Italy’s official forecast is for a full-year GDP contraction of 8% this year, although Economy Minister Roberto Gualtieri has said this will probably have to be revised lower. The Bank of Italy has estimated negative growth of 9.5% and the European Commission has predicted the economy will contract 11.2% — the sharpest fall within the 27-nation bloc.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.