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More disappointment for Italian economy

More disappointment for Italian economy
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There has been more gloomy news on the already shaky Italian economy. Latest figures show it contracted by 0.8 per cent in the second quarter of this year compared to the first – that’s more than had been predicted.

Year on year, the country’s total output – or GDP – shrank by 2.6 per cent.

The numbers confirm that Italy is lagging way behind in the eurozone, and highlight the difficulties of trying to cut debt while in a deep recession.

Some analysts were shocked at the extent of contraction in consumer spending – tax rises and other austerity measures have eroded what was already a fragile economy.

The country has been in recession since the middle of last year, and leading indicators suggest there will be no recovery until well into next.