Milan: Italy recorded zero economic growth in the third quarter of 2023 as high interest rates dampened domestic demand, narrowly avoiding falling into recession, the national statistics agency said Tuesday.
The preliminary estimate comes after the eurozone’s third largest economy recorded a surprise 0.4 per cent fall in gross domestic product (GDP) in the second quarter compared to the previous three months.
Meloni’s government last month lowered its growth forecast for the whole year, to 0.8 per cent down from 1.0 percent previously.
For 2024, it predicts GDP to grow by 1.2 per cent, down from 1.5 per cent forecast in April.
The International Monetary Fund (IMF) is more pessimistic, forecasting growth of 0.7 per cent in both 2023 and 2024.