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1/31, 11:11 AM (Source: TeleTrader)
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Italy slips into recession as GDP drops 0.2% in Q4

The Eurozone's third-largest economy contracted for the second time in a row in the three months through December, the Italian National Institute of Statistics said on Thursday. The seasonally adjusted decline in gross domestic product was only 0.2%, following a quarter-over-quarter decrease of 0.1%, but Istat's reading still formally translates to a technical recession. The government has boosted spending, claiming it would stimulate activity, but it caused a dispute with the European Union.

Italy was still above water from one year ago, with economic growth of a mere 0.1%. The annual rate came in at the lowest since a flat GDP from the third quarter of 2014. The three-month reading was last unchanged in the fourth quarter of that year, following a one-off decline of 0.1% in the second quarter of 2014. Quarterly growth hasn't topped 0.5% since late 2010, while the last recession lasted from mid-2011 to mid-2013.

The euro reached a session low at 11:02 am CET, trading marginally lower for the day at $1.14774 after four consecutive sessions in the green. The exchange rate fell 0.13% to £0.87509. The joint currency fell 0.14% to 1.13985 Swiss francs and 0.4% to ¥124.58, the weakest mark this week.

Breaking the News / IT