3/6/2020, 4:34 PM (Source: TeleTrader)
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Moody's: Italy is in recession due to COVID-19

Moody's Analytics said on Friday Italy is entering recession after negative first quarter due to coronavirus outbreak. In its outlook, Moody's says it expects these shocks to materially slow economic activity, particularly in the first half of this year.

It stated that Italy’s economy is likely in recession, "with the economy having most certainly contracted on a sequential basis in the first quarter of 2020, on the back of 0.3% sequential contraction in the fourth quarter 2019."

Moody's added the coronavirus outbreak is concentrated in Lombardy, Veneto and Emilia-Romagna, provinces that contribute more than 40% of Italy’s GDP. "Extensive closures and restrictions on movement in these regions will have a significant impact on economic growth. In addition, tourism, a major contributor to Italy’s economy, is likely to remain subdued through the summer," the company said.

Baha Breaking News (BBN) / TF