Italy fourth quarter GDP falls a more-than-expected 0.9 percent quarter on quarter
February 14, 2013 8:14 PM EST
ROME - Italy's economy shrank a more-than-expected 0.9 percent in the fourth quarter, data said on Thursday, showing the euro zone's third-biggest economy remains mired in a deep recession ahead of a national vote.
A Reuters survey of 29 analysts had pointed to a fourth quarter gross domestic product decrease of 0.6 percent. Forecasts ranged from -0.1 to -0.7 percent.
The decline marks the sixth consecutive quarterly GDP fall, matching the length of a recession in 1992-93, and longer than the 2008-09 slump.
National statistics office ISTAT reported that GDP fell 2.7 percent year-on-year, compared to forecasts for a 2.4 percent decrease.
Over the whole of 2012, GDP was down 2.2 percent year-on-year on a work-day adjusted basis compared with a 0.6 percent increase of the same index in 2011, ISTAT said. There was one more working day in 2012 versus 2011, ISTAT said.
The Italian government's forecast was for GDP to decline an unadjusted 2.4 percent. Unadjusted GDP data for 2012 will be released on March 1.
Italy has been in recession since mid-2011, and it was deepened by austerity measures that outgoing Prime Minister Mario Monti introduced to stave off a debt crisis.
With a parliamentary vote looming in less than two weeks time, all sides in a three-way race between Monti's centrist bloc, Pier Luigi Bersani's centre-left coalition and Silvio Berlusconi's centre-right are pledging to cut taxes to try to kick start economic growth.
The national election is scheduled for February 24-25.
Earlier on Thursday, Italy's larger euro zone peers, Germany and France, also issued preliminary Q4 GDP data.
German GDP fell 0.6 percent compared with the previous quarter, compared with market expectations of a 0.5 percent decline. France's data showed a 0.3 percent fall, slightly worse than a forecast 0.2 percent drop.
At 1000 GMT, Eurostat will issue aggregate Q4 data for the euro zone as a whole.
ISTAT said so-called "acquired growth" at the end of the fourth quarter stood at -1.0 percent.
That means that if GDP posts no quarterly growth in each quarter of 2013, over the whole year it will drop 1.0 percent compared with the previous year.
Most Popular Slideshows
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- iOS 8 Jailbreak Release Date Likely this October 2014 with Pangu not Evad3rs Firming Up as Creator
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- Top 4 Free-To-Download Apps for Fuller iPhone 6, 6 Plus Experience
- Battery Saving Android 5.0 Lollipop Feature Extends The Battery Life Of Your Android Device By 90 Minutes And Displays Orange Bar While Power Saving Mode Is On
- Apple Inc. (AAPL) Stock Set to Soar Beyond $100 Despite Decline After New iPad Launch
- Russia Beefs Up Gold Reserves To Offset Heat of Sanctions And Undercut Dollar
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu