Rolling coverage of the latest economic and financial news, as Italy stumbles back into recession
- Latest: Italy is in recession again
- Italian economy shrank by 0.2% last quarter
- Eurozone only grew by 0.2%
- Introduction: UK house price growth has fizzled out
- Brexit uncertainty is weighing market down
Andrea Iannelli, investment director at Fidelity International, says Italy was dragged into recession by problems at home, and abroad:
“The latest Italian GDP numbers may come as no surprise to investors, but it does highlight the challenges that still lie ahead for the country and the coalition government.
The slowdown in the country’s major trading partners are partly to blame. However, the standoff between the government and the European authorities over the budget in the summer of 2018 has exacerbated the country’s weaknesses.
One of the leaders of Italy’s coalition partners has blamed his predecessors, and European austerity, for the country’s economic mess.
“I believe this referendum will have a positive outcome for those who are against austerity.”