MILAN — Italy has fallen back into recession, intensifying concerns about the 19-country eurozone economy and a possible flare-up in the debt market jitters that have haunted the bloc in the past.

The Italian economy, the third-largest in the eurozone, contracted by a quarterly rate of 0.2 percent in the fourth quarter of 2018, the national statistics agency said.

Following a 0.1 percent drop in the previous three-month period that means Italy is in a technical recession, defined as two straight quarters of economic contraction — just four years after its last one.

Italy’s recession is one reason why the wider eurozone slowed in 2018, along with uncertainties related to Brexit, the China-U.S. trade spat and new vehicle emissions standards.

Though the eurozone is performing better than in the dark days of the debt crisis, which threatened to break up the euro currency, it’s still lagging the U.S. economy, which is projected to have grown about 3 percent in 2018. As a result, unemployment in the eurozone is about double the U.S.’s 4 percent at 7.9 percent.

The eurozone economy as a whole grew by a meager 0.2 percent in the final quarter, the same as in the previous quarter, according to provisional figures released Thursday by the Eurostat statistics agency.

It expanded by 1.8 percent in 2018 overall, its weakest rate in four years. That’s lower than had been anticipated a year ago, when the bloc was expected to slow only slightly from 2017’s strong 2.4 percent rate.

The Italian economy has become an acute source of concern over the past few months, partly as a result of the new populist government’s spat with the European Union’s executive Commission over its budget plans, which has undermined business confidence and seen Italian borrowing rates in bond markets spike higher.

The government, elected against the backdrop of economic disappointment after years — even decades — of stagnant growth, wants to ramp up spending to get the economy going. It wants to provide more social security payments and to roll back a pension reform.

The plan means Italy would not reduce its debt load, which at over 130 percent is the highest in Europe after Greece.

The EU Commission, still haunted by the memory of the debt crisis that required bailouts for a number of countries, has insisted that the Italian government rein back on its spending plans.

Italian Premier Giuseppe Conte sought to downplay the recession and placed the blame firmly on the trade spat between the United States and China, which he says has weighed on Italian exports.

“This is a transitory factor,” he told reporters in Rome.

The head of Italy’s UNC consumer advocate organization, Massimiliano Dona, said the weak figures raise questions over the Italian government’s prediction that the economy will grow by 1 percent in 2019. He said that could mean the government will have to adjust its spending plans.

Italy hasn’t been the only reason why the eurozone slowed in 2019. Germany, Europe’s biggest economy, suffered an unexpected contraction in the third quarter largely due to changes in emissions standards that hurt auto sales. And uncertainty over Britain’s exit from the EU has weighed on sentiment, as has the fear of a global trade war stoked largely by growing tensions between the United States and China.

Separate economic indicators point to further weakness at the start of 2019 and most economists expect a difficult period ahead if the main causes of uncertainty are not addressed soon.

“The continued decline in sentiment indicates that the underlying pace of growth has slowed even further,” said Christoph Weil, an economist at Commerzbank. “Uncertainty about economic developments in China, the unresolved trade conflict between the U.S. and China and Brexit continue to weigh on the economic outlook for 2019.”


https://www.washingtonpost.com/business/italy-slides-into-recession-darkening-outlook-for-europe/2019/01/31/eae4aade-2555-11e9-b5b4-1d18dfb7b084_story.html?noredirect=on

Is that what you call recession, that won't stop my edo, going there, if you know you know

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hmmm

Interesting

No matter what, Italy recession go still dey learn where naija recession dey. See recession news, they no talk about poverty or increase in commodities or citizens hardship. You go respect news naaw.

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Ok

Ok sir noted!


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Let's blame buhari for this...

Lmfao. All that welfare spending on Illegal immigrant have finally crippled their economy.

Time for deportation.

i think say na only Naija dey enter in and out of recession?

Edo girls comes to mind

The Italy branch of APC is doing a great job...

Hope they won't blame Nigerian Oloshos for this

Not good.

It would mean a challenge for the energy market, greater restrictions on immigration and propagation of more deadly far-right ideals.

Nigerians save ahead. This is a global warning since last year.

Buhari had also informed State governors and the masses to prepare for tough year 2019.

This is not about Apc government.

Save!!!

Btw, what is really happening in Italy? They missed world cup, now sliding into recession.. This is too much for the citizens

Please are you telling me Nigeria Economy is beta dan Italy right now I will rada av Italy Recession dan aving d so called no recession Nigeria is experiencing right now..

But its not Buhari that is ruling them na, abi whats going on?
No economy is above recession. 4+4=8

Even at recession italy would still be far ahead of us

That's Ronaldo's Fault

The mighty are falling.


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Make dem deport all Africa and mostly Nigeria in Italy so that they can be out of recession the immigrants there is too much for the country let them all return home so that we can fix Africa and mostly Nigeria together

China is also entering into recession....thanks to Donald trump

Dare own recession is awa dream land


as for me i dont call dat a recession dey a far beta dan Naija

Check well, the head of their government probably share the same ancestral line with Buhari or did Buhari visit or pass through Italian airspace recently?



I am not a Wailer or Zombie ooo.
Just a concerned citizen of the world

Bad times.

They should come and take lessons from Nigeria and Buhari on howto come out of recession.

Germany might follow if care is not taken