Italian economy shrinks 0.3 per cent in Q4

Italy's economy shrank 0.3 per cent in the fourth quarter of 2009, a slightly bigger contraction than first reported, national statistics agency ISTAT said yesterday.

Italy's Gross Domestic Product shrank by 0.3 per cent compared to the previous quarter in data adjusted for seasonal and calendar variations, said ISTAT in a statement. In February, ISTAT estimated that GDP had shrunk 0.2 per cent compared to the third quarter in a preliminary estimate.

According to the new figures, GDP for the full 2009 year shrank 5.1 per cent and not by 4.9 per cent as previously estimated.

Italy's GDP expanded 0.6 per cent in the third quarter of 2009 compared to the second quarter after five consecutive quarters of decline.

In January, the Italian government revised upward its economic growth forecast for 2010 from 0.7 per cent to 1.1 per cent.