Italy’s gross domestic product (GDP) slumped by 0.3 percent in the second quarter (Q2) of the year compared to the previous quarter, preliminary data from the government’s statistics institute showed Monday.
The GDP in Q2 was still 0.6 percent higher than the same period a year earlier, said Italy’s National Institute of Statistics (ISTAT), Xinhua news agency reported.
In a statement, ISTAT said the trend of negative growth was “cyclical”, adding the trend was due to a decrease in both primary and industrial sectors, which overweighed a strengthening of the services sector, driven mostly by tourism. Overall demand also weakened, the agency said.
ISTAT said that the country’s inflation rate in July was 6 percent, the seventh time in the previous eight months of declining since reaching a record of 11.8-percent in both October and November last year.
Inflation in Italy hit record last year by soaring energy prices sparked by the conflict between Russia and Ukraine, and is now equal to the level of April 2022. Despite the steady decrease, inflation in Italy and across the eurozone remains far above historic norms.
The slower growth rate was also reflected in the newly released trade data for June, which included a 14.6 percent decline in imports from outside the European Union (EU). ISTAT said the decreases in imports were seen across the board, led by a 90.3 percent decline in imports from Russia compared to a year earlier — mostly due to the cut-off of energy sales between the countries.
Exports increased marginally, rising by 0.4 percent due to stronger sales for consumer durable goods and energy-related products.