FOREX TradingCharts.com

Financial News: Bank Of Italy Sees Around 9.5% GDP Contraction

Bank Of Italy Sees Around 9.5% GDP Contraction This Year On Covid-19

07/10/2020 - 11:42:00 (RTTNews)

(RTTNews) - Italy's economy is set to contract by around 9.5 percent this year due to the impact of the coronavirus pandemic, and then recover gradually over the next two years, the Bank of Italy said on Friday in its latest economic bulletin.

In June, the bank had forecast 9.2 percent decline in national output. The economy grew 0.3 percent in 2019.

The economy is projected to grow 4.8 percent in 2021 and 2.4 percent in 2022.

"The recovery will be gradual: persistent effects on household consumption will stem from the decline in employment and in disposable income, albeit mitigated by the support measures," the bank said.

Further, investment is seen to be impacted this year by the deterioration in the outlook for demand and firms' confidence. The decline is expected to be partly recouped in 2021-22.

Inflation will be practically nil both this year and the next, and prices are expected to return to a growth of 1.0 per cent in 2022, the bank added.

The country is among the worst hit in Europe due to the coronavirus, or Covid-19, pandemic.

The Italian economy shrunk 5.3 percent in the first quarter. The decline intensified in the second quarter and is likely to be around 10 percent, the bank said.

This estimate primarily reflects the highly unfavorable performance in April, while motorway traffic, gas and electricity consumption suggest that economic activity began to recover in May, encouraged by the progressive easing of restrictions, the bank noted.

Foreign trade and tourism continues to be impacted by the pandemic. The labor market was also hurt severely as reflected by the sharp drop in employment and rising unemployment rate. Recent data suggest a rebound in the job market.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Portugal Q2 GDP Decline Revised To 16.3% (01 hr(s), 13 min(s), 49 sec(s) ago)
(RTTNews) - Portugal's economy contracted slightly less than initially estimated, but the rate ...Full Story»

Dutch GDP Falls Most On Record On Covid-19 Impact (01 hr(s), 26 min(s), 49 sec(s) ago)
(RTTNews) - The Netherlands' economy shrank at a record pace in the second quarter and entered ...Full Story»

Slovakia Economy In Recession In Q2 (01 hr(s), 42 min(s), 49 sec(s) ago)
(RTTNews) - Slovakia's economy shrank further in the second quarter amid the disruption caused ...Full Story»

U.S. Business Inventories Slump Slightly Less Than Expected In June (02 hr(s), 45 min(s), 49 sec(s) ago)
(RTTNews) - Business inventories in the U.S. showed a continued decrease in the month of June, acc ...Full Story»

U.S. Consumer Sentiment Unexpectedly Edges Higher In August (03 hr(s), 03 min(s), 49 sec(s) ago)
(RTTNews) - A preliminary reading released by the University of Michigan on Friday unexpectedly sh ...Full Story»

Finland Economy Sinks Into Deep Recession (03 hr(s), 26 min(s), 49 sec(s) ago)
(RTTNews) - Finland's economy shrank for a third consecutive quarter in the three months to Ju ...Full Story»

U.S. Industrial Production Growth Slows But Matches Estimates (03 hr(s), 24 min(s), 49 sec(s) ago)
(RTTNews) - Reflecting sharp increases in manufacturing and utilities output, the Labor Department ...Full Story»

U.S. Productivity Spikes In Q2 As Hours Plummet More Than Output (03 hr(s), 32 min(s), 49 sec(s) ago)
(RTTNews) - Labor productivity in the U.S. soared by much more than expected in the second quarter ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Portugal Q2 GDP Decline Revised To 16.3%

08/14/2020 - 12:01 PM (RTTNews)
(RTTNews) - Portugal's economy contracted slightly less than initially estimated, but the rate ...Full Story>>

Dutch GDP Falls Most On Record On Covid-19 Impact

08/14/2020 - 11:48 AM (RTTNews)
(RTTNews) - The Netherlands' economy shrank at a record pace in the second quarter and entered ...Full Story>>

Slovakia Economy In Recession In Q2

08/14/2020 - 11:32 AM (RTTNews)
(RTTNews) - Slovakia's economy shrank further in the second quarter amid the disruption caused ...Full Story>>

U.S. Business Inventories Slump Slightly Less Than Expected In June

08/14/2020 - 10:29 AM (RTTNews)
(RTTNews) - Business inventories in the U.S. showed a continued decrease in the month of June, acc ...Full Story>>

U.S. Consumer Sentiment Unexpectedly Edges Higher In August

08/14/2020 - 10:11 AM (RTTNews)
(RTTNews) - A preliminary reading released by the University of Michigan on Friday unexpectedly sh ...Full Story>>

Do not sell my personal information

Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.