Italian Economy to Shrink 1.4 Percent in 2013

Italy’s economy will shrink by 1.4% this year, a much sharper contraction than previously forecast, according to the national statistic agency.

Istat forecast that Italy will post 0.7% growth in 2014, but added that unemployment will reach a record high of 12.3% next year.

Istat predicted in November that the eurozone’s third largest economy would shrink by just 0.5% this year.

The data underlines growing fears about the strength of eurozone economies.

Last week the European Central Bank cut interest rates to a new record low of 0.5%, and recent economic data has pointed to a slowdown in growth in Germany and France.

There have also been calls among politicians and policymakers to ease up on austerity measures, which many believe are now contributing to sluggish eurozone growth.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza