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Italy first quarter GDP declines unexpectedly

Published 15/05/2014, 09:13

May 14 (Reuters) - Italian gross domestic product contracted unexpectedly in the first quarter of the year, denting a fragile recovery begun at the end of last year on the back of weaker industrial production, data showed on Thursday.

Preliminary estimates from statistics office ISTAT showed gross domestic product fell by 0.1 percent in the first three months of the year from the previous quarter and by 0.5 percent from the same period a year earlier.

That contrasted with estimates from 27 analysts polled by Reuters, who forecast a 0.2 percent quarterly rise and a 0.1 percent annual fall.

ISTAT gave no breakdown of the components contributing to its preliminary estimate, saying only that there had been negative developments in industry and zero growth in services with a small positive contribution from agriculture.

    Italy emerged from its longest recession since World War Two last year, posting quarterly growth of 0.1 percent in the fourth quarter of the year on the back of a moderate rise in exports but it has struggled to boost domestic demand.

(Reporting by James Mackenzie)

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