The Italian economy recovered, but growth was worse than estimated

The Italian economy recovered, but growth was worse than estimated

The Italian economy recovered in the third quarter and the country emerged from the technical recession, which it slipped into in the first quarter. However, the growth rate was slightly weaker than the preliminary estimate indicated. This was stated on Tuesday by the Italian statistical office, which published the final data. Italy's gross domestic product (GDP) grew by 15.9% quarter on quarter in the third quarter. This is weaker growth than the preliminary estimate, which pointed to economic growth of 16.1%. On the other hand, it is a significant recovery compared to the development in the second quarter, in which the Italian economy collapsed as a result of measures against the spread of the new coronavirus by 13%. At the same time, the Italian economy emerged from the technical recession, into which it slipped in the first quarter. This is defined as an economic downturn for two consecutive quarters, with the Italian economy declining for the first time in the fourth quarter of last year. At that time, it fell by 0.2% quarter on quarter. This was followed by a decline of 5.5% in the first quarter of 2020 and a 13% decline in the second quarter. Year-on-year, the economy contracted by 5% in the third quarter. Even in this case, the final figure is worse than the preliminary estimate. Accordingly, the year-on-year decline in the economy reached 4.7%. In comparison, in the second quarter, the Italian economy fell by 18% year on year.