Italy exits recession with GDP growth 0.6 per cent

Italy's gross domestic product increased 0.6 per cent in the third quarter of the year helping the country exit recession, according to a preliminary estimate from its statistics agency ISTAT. This is the first time the Italian economy has grown in more than a year.

The economic expansion between July and September broke a pattern of contraction over five consecutive quarters. The first months of last year saw the country's worst recession in the post-war period.

According to ISTAT, Italy's GDP was down 4.6 per cent compared with July-September last year.

The figures were mostly as forecast with economists predictions of a 0.6 per cent quarterly GDP rise and a 4.7 per cent year-on-year decline.

Even as analysts hailed the end of the recession in Italy, they expect growth to slow in the fourth quarter. According to their projections, growth would weaken next year amid rising unemployment and a strong euro.                                      

Italy follows France and Germany, which posted quarterly economic growth of 0.7 per cent and 0.3 per cent respectively between July and September.

Both Germany and France had exited recession in the second quarter posting 0.3 per cent growth.

Germany, France and Italy together contribute greater than two-thirds of aggregate output in the euro zone - the 16 countries that have adopted the euro as their common currency.