Italy Slips into Economic Recession

January 31, 2019 at 12:35 PM

Italy’s economy posted its second consecutive quarter of shrinkage in October-December, thereby signaling a recession.

The country’s Istat statistics agency says Italy’s economy, which contracted by 0.1% in the third quarter, shrank by 0.2% in the following period. Exports rose but were offset by declines in industrial, agricultural, forestry and fishing sectors.

Analysts say Italy’s problem is a combination of high debt and a cooling economy. BBC News reports that Italy’s government debt has grown to €2.3 trillion ($2.6 trillion), the largest in the European Union and the fourth-largest for any government worldwide.