World Economy

Italy Growth Grounds to a Halt

Italy Growth Grounds to a HaltItaly Growth Grounds to a Halt

Italy’s economic growth has halted, Istat national statistics agency said in a monthly bulletin out Monday, ANSA reported. “The Italian economy’s growth phase has been interrupted due to declining internal demand and to a fall in industrial production,” the agency said. Negative July numbers suggest the present weakness will continue in the “coming months”, Istat said. Last Friday, Istat revised upward its annual GDP growth estimate, to +0.8% from +0.7% but at the same time said GDP was flat in the second quarter compared to the previous quarter. Sectors that posted growth in Q2 compared to Q1 included agriculture (+0.5%) and services (+0.2%), while industry was -0.6%. The agency also revised upward its projected GDP growth estimates for 2016, from +0.6% to +0.7%. Istat said consumption stalled and investments decreased in the second quarter, with family consumption +0.1% compared to the first quarter, public administration spending -0.3%, and gross fixed investments -0.3%. On the trade front, imports rose by 1.5% and exports added 1.9%, Istat said.