ROME (XINHUA) – Italy’s economy contracted by 0.1 per cent quarter-on-quarter in the final three months (Q4) of last year, the country’s National Institute of Statistics (ISTAT) said on Friday.
On a year-on-year basis, gross domestic product (GDP) in the quarter increased by 1.4 per cent, against the originally estimated 1.7 per cent.
The country could thus be in the midst of a technical recession since the economy is widely seen as contracting again in the current economic quarter. A recession is defined as two consecutive quarters of negative GDP growth.
According to ISTAT, industrial and agricultural production declined in Q4 year-on-year, while the services sector grew over the same span.
Italy’s economy has been bruised by direct and indirect impacts of the ongoing crisis in Ukraine, pushing energy prices higher, interrupting trade and increasing spending.