Forex Notes

Economy Of Italy Presented A Nasty Surprise

In the 4 th quarter of last year, Italy's economy unexpectedly fell by 0,2%, which cast a shadow on the prospects for recovery after the recession in 3 quarter.

During the past 7 quarters of GDP of the third-largest euro zone economy showed decline 6 times. Agency statistics, ISTAT reported that the annualized rate fell by 2,8%, has one of the sharpest downturns in economic activity since the beginning of the recession in spring 2008.

"The figures clearly not encouraging, and the disappointment affected and the euro-zone GDP data," - said Luigi Speranza, an economist at BNP Paribas.

Economists polled by Reuters, predicted that the index has appreciated by 0.1% quarter / quarter, resulting in annualized figure will amount to -2.5%. Last year Italy's economy declined by 4.9% y / y, the highest since 1980 pace.

"A partial justification for Italy could serve as the fact that the 3 rd quarter the economy grew stronger than forecasts. Data as of 3 and a 4 quarter to be revised", - added the economist.

During the period from July to September, the economy grew by 0,6%. Marco Valle of Unicredit argues that the weak data for the 4 quarter should be viewed as a "technical correction. In the future we will see an uptrend, but the growth will be moderate."