Economic minister declares Italy out of Recession
by FFE EU News Staff
Italy’s Economic minister Fabrizio Saccomanni has announced on Tuesday that the country is finally seeing an end to two years of negative growth. Data from the national statistics agency Istat has shown that Italy has finally ended its eight consecutive quarters of losses after the third quarter (Q3) of 2013 registered the same gross domestic product (GDP) as the second quarter.
The minister posted a tweet yesterday saying that Istat has certified the end of recession:
While Italy is now on the right road out of recession, he recognised that recovery is still a long way to go. The government is forecasting a 1% growth in 2014. The minister added that ‘With companies going again, it will finally be possible to have improvements on the jobs front.’
Italy currently faces 12.5% unemployment, with four in 10 people under 25 without a job. Social security agency INPS also revealed that unemployment benefits claims jumped by .4 million from last year, putting the figure at 1.7m from January–October.
Although the government remains positive that growth will be achieved next year, businesses aren’t sharing the sentiment. Italian retailers’ group Confescercenti revealed that 87% of shoppers cut their budget for Christmas this year. The group said that with ‘economic situation going from recession to zero growth’, recovery ‘is still far off.’