The sufferings of the Italian economy kept increasing even in the second quarter and raised the prospect that it would be in recession soon.
During the second quarter output shrank about 0.3% and according to some official figures, it was the weakest quarterly performance in previous five years.
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But officially, Italy is not yet in recession as this requires two successive negative quarters. During the first quarter of 2008, Italy’s economy grew around 0.5%
These figures showed a pathetic condition of the third largest European economy.
According to analysts the figures show the rapid slowdown in economic activity in Europe that was a result of global credit crisis, rising inflation and US economic falling.
Some economists are forecasting an overall contraction in European economic growth, meanwhile, in the 15-member single currency bloc; the estimates for growth during second quarter will be published in next week.
Many other European countries, including Ireland and Denmark are either in recession or on the brink of it.
Labor unrest, poor productivity and political instability have been hampering the Italian economy for quite long time.
“These figures are not surprising as they were expected considering the structural weakness of the Italian economy.” Susana Garcia of Deutsche Bank commented on those latest figures.
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