ZCZC
BCN-25
ITALY-ECONOMY-Q2
Italy’s economy slows down in Q2: report
ROME, Aug. 4, 2018 (BSS/Xinhua) – Italy’s economy slowed down in the
second quarter this year amid a deceleration of the eurozone, Istat national
statistics bureau said in its monthly bulletin on Friday.
Gross domestic product (GDP) grew 0.2 percent in April-June, compared to
0.3 percent the previous quarter, with domestic consumption “contributing
positively to growth” amid a fall in net foreign demand, according to the
bulletin.
The eurozone economy also decelerated in the second quarter, with GDP
adding 0.3 percent compared with 0.4 percent in the first quarter.
On the global level, Istat said world trade continues to grow even though
“the U.S. administration’s introduction of import tariffs represents
significant downside risk in the coming months.”
In Italy in the second quarter, industrial production was stationary in
spite of spikes in May and June as all leading industrial sectors showed a
downturn compared to the first quarter. The exception was capital goods,
which grew by 1.6 percent.
In June, industries posting the highest year-on-year growth were mining
(+12.5 percent), pharmaceuticals (+11.8 percent) and vehicle manufacturing
(+7.1 percent). The steepest declines were in oil refining (-8.6 percent),
power utilities (-6.5 percent) and wood, paper and printing (-4.2 percent).
Turnover also showed signs of deceleration, with industrial orders down
1.1 percent in spite of a 5.5 percent rise in foreign orders in May compared
to April.
Foreign sales rose 1.7 percent in the second quarter due to a 7.9 percent
jump in sales to non-European Union countries in June, which was led by a
rise in capital goods (+16.9 percent) thanks to sales of maritime vessels,
Istat said.
Second-quarter imports increased by 4.6 percent compared to the previous
quarter, led by energy (+5.6 percent), followed by intermediate goods (+4.5
percent) and capital goods (+4.2 percent).
Italy’s estimated trade surplus stood at 3.5 billion euros in June,
compared to 3.3 billion euros in the same period last year, with a rise in
exports to Switzerland (+55.1 percent), the United States (+18.8 percent),
and India (+11.6 percent).
Istat saw a drop in sales to OPEC countries (-18.3 percent), the Middle
East (-13.1 percent), and Turkey (-12.5 percent) in June this year compared
to the same period in 2017.
Consumer and business confidence were flat in July compared to June, but
the outlook for both indicators showed them declining as the economic
slowdown continues, Istat said.
BSS/XINHUA/HR/1432