ZCZC
BCN-12
ITALY-ECONOMY-GROWTH
PM says Italy economy probably contracted in Q4 2018
ROME, Jan 31, 2019 (BSS/AFP) – Italy’s Prime Minister Giuseppe Conte said
Wednesday that the economy probably contracted in the fourth quarter, which
if true would plunge the country into a recession.
The gross domestic product (GDP) data for the fourth quarter of 2018 is
set to be released Thursday by the ISTAT national statistics office.
“I expect a further contraction of gross domestic product,” Conte said at
a business conference in Milan.
It would make it the second consecutive quarter of falling GDP — after a
drop of 0.1 percent in the third quarter — and would tip Italy into
recession.
“Analysts tell us we’ll likely still suffer a bit at the start of this
year,” he said, pointing the finger at a slowdown in China and Germany which
are hurting Italian exports.
“But all the elements are there to recover in the second half,” he said.
A recession is likely to put pressure on the spending plans of Italy’s
populist government.
The coalition of the anti-establishment Five Star Movement (M5S) and the
far-right League party was forced to water down its big-spending budget in
December to avoid being punished by the European Commission and financial
markets.
A slowdown will make it even harder to follow through on expensive vote-
winning measures both parties promised their bases.
BSS/AFP/HR/0940