For the third time in a decade, Italy has fallen into recession.
The economic news comes as the Eurozone as a whole posts sluggish performance for the last quarter of 2018.
In the final three months of 2018, the economy shrank by 0.2%, following a 0.1% decline in the third quarter, the Istat statistics office said.
Italy now in recession after two quarters of negative growth – Italian government expect it to continue into this year.
German 2019 growth forecast slashed from 1.8% to 1%.
Eurozone overall growth pretty poor.
And Merkel wants to “go to the brink” on Brexit negotiations.
— Christian May (@ChristianJMay) January 31, 2019
Italian Prime Minister Giuseppe Conte said the contraction was likely to continue into 2019.
Meanwhile, figures from the EU showed economic growth in the 19-country eurozone still languishing.
Growth in the euro area remained at 0.2% in the final quarter of 2018, the same as the previous quarter and in line with analysts’ expectations.
The figures, issued by the Eurostat agency, showed that in the 28-nation EU as a whole, fourth-quarter growth was 0.3%.
— Holger Zschaepitz (@Schuldensuehner) January 31, 2019
Italy’s coalition government was forced to revise its expansionary 2019 budget last month after the European Commission raised concerns about the impact on the country’s debt levels.