Amid sluggish output, Italy has fallen into recession…again

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.

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%.

 

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.