Italy’s Economy on the Brink of Recession as GDP Growth Stalls
According to the Sedaye Sama News Agency, According to Reuters, Italy’s economy edged closer to recession in the third quarter of this year, as the country’s gross domestic product (GDP) remained flat following a slight contraction in the previous quarter, underperforming most of its European peers.
Data from Italy’s National Statistics Institute (ISTAT) showed that the economy grew by only 0.4% year-on-year between July and September.
Meanwhile, Eurostat, the statistical office of the European Union, reported that the eurozone economy, comprising 20 member states, grew by 0.2% quarter-on-quarter and 1.3% on an annual basis.
According to the report, Italy narrowly avoided a technical recession, which economists define as two consecutive quarters of GDP decline.
Earlier, ISTAT had confirmed that Italy’s economy contracted by 0.1% between April and June.
The zero GDP growth recorded between July and September was attributed to weaker domestic demand, partly offset by positive contributions from foreign trade.
In its preliminary estimate, ISTAT did not release detailed sectoral data but stated that agriculture recorded growth, services remained stable, and industrial output declined.
An Italian economic think tank noted that the only positive driver for Italy’s growth this year was the inflow of funds from the EU’s post-COVID recovery plan, suggesting that “virtually all of Italy’s economic growth in 2024” stemmed from that source.
