Italy’s Gross Domestic Product (GDP), the third largest economy in the eurozone, registered a record contraction of 5.3% in the first quarter of 2020, the largest in the current historical series, which dates back to 1995, according to the Italian statistical agency Istat, which has worsened in six tenths his first estimate of the data.
In this way, Italy confirms its technical recession, after its GDP had fallen 0.2% in the last three months of 2019.
Between January and March 2020, imports from Italy registered a 6.2% drop, while imports decreased 8%. For its part, household consumption fell by 6.6% and that of the Government by 0.3%. Gross fixed capital formation fell by 8.8%, with a 12.4% drop in investment in machinery and equipment. Compared to the first quarter of 2019, Italy’s GDP fell by 5.4%.
France corrects its estimate
Conversely, France has revised its first estimate of the evolution of GDP between January and March by half a point, when the second largest economy in the euro experienced a contraction of 5.3%, and not 5.8% as it had initially estimated, although the French country continues in a technical recession, since in the fourth quarter of 2019 its GDP had already down 0.1%.
In this way, the fall in GDP in France is no longer the most serious since the end of the World War II, matching the slump recorded in the second quarter of 1968, which would be followed by an 8% rebound in the following three months.
In the French case, lImports fell by 5.7% in the first quarter, while exports fell 6.1%. In turn, household consumption fell by 5.6% and that of the Government by 2%, while gross fixed capital formation sank 10.5% in the quarter.