Italian GDP stops contracting, but scenario still remains fragile



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Italian GDP stops contracting, but scenario still remains fragile

As anticipated, the Italian GDP had stopped contracting during the first quarter of 2019, after witnessing a slaughtering experience over the last quarter of 2018 in the face of an overwhelming concern linked to global growth, however, the financial outlook for the second quarter still appeared to be friable and uncertain, analysts suggested.

According to Confindustria, the General Confederation of Italian Industry, a combined powerhouse of Italian employers’ federation and National Chamber of Commerce, had written in its April economic outlook that the government had remained bitterly disappointed over the difficult financial situations despite a halt in its national GDP shrinkage, and the government had yet to reveal its course of action to grapple with the muffling economic momentum, increasing sheer uncertainty over the outlook of second quarterly growth instead reinforcing confidence.

Addressing to an imminent risk of a short-term decline of Italy’s growth, the General Confederation of Italian Industry, a century-old organization designed to crop up the nation’s economy, wrote in its statement, “In January-February, industrial production rose again, recovering from the collapse at the end of 2018, but largely due to replenishment of stocks, foreshadowing a new short-term decline”.

In point of fact, revised data on Q4 of 2018 had revealed a contraction figure of -0.1 percent, indicating that the country’s economy had been in a technical recession, however, the estimate of the Q1, 2019, would be announced on Tuesday (April 30th), which would more likely to cause volatility in both stock and FX markets, said analysts.