Italian Economy Stalls in Q2

Italy's gross domestic product showed no growth on the quarter in the three months to June 2016 compared to a 0.3 percent expansion in the previous period while missing market expectations of 0.2 percent growth, preliminary estimates showed. It was the lowest reading since the fourth quarter of 2014, as a positive contribution from foreign trade was offset by a contraction in domestic demand.

Net exports contributed positively to growth while domestic demand contracted. On the production side, there was an increase in the value added in both services agriculture sectors while industry contracted.

Compared with the same quarter a year earlier, the GDP advanced 0.7 percent, easing from a 1 percent expansion in the three months to March 2016 and missing market expectations of 0.8 percent growth.

Meanwhile, the government officially forecasts 1.2 percent growth this year, but officials and most economists have warned it will come in lower.

Italian Economy Stalls in Q2

Istat | Joana Ferreira |
8/12/2016 9:26:09 AM