COVID-19 drives Italy to recession; economy nosedives 12.8% in Q2

The Italian economy shrank by more than previously thought during the second quarter as a result of lockdown restrictions imposed to curb the coronavirus pandemic, official figures showed Monday.

The national statistics bureau ISTAT said the economy contracted by quarterly rate of 12.8 per cent during the April to June period, with consumer spending largely behind the plunge.

The Italian economy is also 17.7 per cent smaller than it was in the same period last year.

Those figures were worse than preliminary estimates issued in late July of a 12.4 per cent quarterly decline and a 17.3 per cent annual fall.

Also read: COVID-19 effect: Germany to lower its 2021 economic growth forecast