Italy’s economy shrank by 0.1% in I quarter as strong growth of industrial production in the country.
Final data on GDP growth coincided with the preliminary forecasts of economists surveyed by Bloomberg.
According to the statistical institute Istat volume of industrial production in Italy increased in April by 0.7% compared with March. Economists polled by Bloomberg, on average, expected an increase of 0.4%.
Prime Minister Matteo Renzi tries to return the economy to sustainable growth after two years of recession. Italy’s economy is experiencing high unemployment, which last month was 12.6% (slightly lower than the record of 12.7% set earlier this year), as well as reduction of bank lending to the private sector.
It is expected that the growth of the Italian economy in the II quarter will be 0.1-0.4%. While Istat predicts weakening growth in the III quarter and its acceleration in the last three months of 2014
Consumer spending in Italy also increased by 0.1% over the reporting period for the first time since 2010, while exports increased by 0.8%.
Recall that in the IV quarter of 2013, the economy showed growth, thereby ending the longest recession since World War II.