Italian Economy Stalls in Q2


Italy's gross domestic product remained flat in the second quarter of 2016 compared to a 0.3 percent expansion in the previous period and in line with preliminary estimates. It was the lowest GDP growth since the fourth quarter of 2014, as a positive contribution from foreign trade was offset by a contraction in domestic demand. Compared with the same quarter a year earlier, the GDP advanced 0.8 percent, above preliminary estimates of a 0.7 percent growth.

Net exports contributed positively to growth (+0.2 percent from -0.3 percent in Q1) while domestic demand contracted (-0.1 percent from +0.4 percent in Q1). Government spending shrank 0.3 percent (+0.2 percent in Q1) and investments also declined 0.3 percent (+0.8 percent in Q1) while consumer spending advanced 0.1 percent (+0.4 percent in Q1).  On the production side, there was an increase in the value added in both services (+0.5 percent) agriculture (+0.2 percent) sectors while industry contracted 0.6 percent. 

Compared with the same quarter a year earlier, the GDP advanced 0.8 percent, easing from a 1 percent expansion in the three months to March 2016 while above preliminary estimates of 0.7 percent growth.

Italian Economy Stalls in Q2


Istat | Yekaterina Guchshina| yekaterina@tradingeconomics.com
9/2/2016 9:59:36 AM