Italian economy shrinks for ninth month

AFP - [email protected] • 14 Nov, 2013 Updated Thu 14 Nov 2013 13:50 CEST
Italian economy shrinks for ninth month

The Italian economy, the third-biggest in the eurozone, contracted by 0.1 percent in the third quarter in the ninth showing of such shrinkage in a row, initial official data showed on Thursday.


The contraction compared with output in the previous quarter, but the data also showed that over 12 months the economy shrank by 1.9 percent.

Italy has pulled away from deep political crisis but is still going through a period of big structural reforms to tackle a debt mountain and raise efficiency.

The latest data showed that output by the sectors of agriculture and services shrank in the quarter.

However, industrial output picked up.

Bank Intesa Sanpaolo said in a note to clients that "the return to growth on a quarterly basis looks like being delayed until the last quarter of the year."

The bank said it expected the economy to contract by 1.8 percent this year and to recover with growth of 0.5 percent in 2014.

The government says it expected the economy to take a turn into a trend of growth by the end of the year and for growth next year to be 1.1 percent.


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