Economics

Italy Caps Tumultuous Year With First Recession Since 2013

  • Euro area’s third-biggest economy shrinks for second quarter
  • Disappointing figures will put pressure on coalition in Rome
Italy Falls Into Recession for First Time Since 2013
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Italy fell into recession at the end of 2018, capping a year of political turmoil, higher borrowing costs and fiscal tensions that took their toll on the economy.

Output shrank 0.2 percent in the three months through December, following a 0.1 percent decline in the previous quarter, statistics agency Istat said Thursday. That was more than expected, and will put further pressure on the coalition government, which already appears to be fraying.