The Italian economy appears to have contracted in the third quarter. The statistical office Istat reported at the end of October that the economy was neither growing nor shrinking. New figures show that gross domestic product (GDP) has nevertheless fallen. That reports Business Insider.
GDP fell by 3% in the 0,1 months to September, compared to the previous quarter. On an annual basis, however, there was still growth (0,7%). Italy also suffered a decline in investment in the past quarter, which fell by 1,1% on a quarterly basis.
Rome has been on a collision course with the European Union (EU) over the Italian budget for some time. Italy had submitted a budget that did not meet the European standards for sound public finances. The country's government wanted to increase the budget deficit to 2,4%, mainly to deliver on some election promises.
EU rejected the budget,
The European Commission rejected the budget, a unique measure. The country subsequently showed itself unwilling to make adjustments. Later, Deputy Prime Minister Luigi Di Maio said he could easily agree to a lower budget deficit, but then his counterpart Matteo Salvini mentioned percentages of 2,2% and 2,6%, the latter of which is therefore higher than the already unauthorized 2,4, XNUMX%.
It remains to be seen whether the developments will cause the Italian government to change its position, according to the leading Italian economist Lorenzo Codogno.
Read more on Business Insider:
- Minister Hoekstra is concerned about Italy after talks with Tria
- Italian government creates a mini-crisis on the stock market
- Crisis is due to lack of knowledge about the role of the central bank
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