Italy's economy entered recession as estimated in the fourth quarter for the first time since 2009, due to the deceleration in demand and investment, final data from the statistical office Istat showed Monday.
Gross domestic product declined 0.7 percent from a quarter ago, bigger than the 0.2 percent drop logged in the third quarter. Two consecutive quarters of decline in GDP indicates recession in the region.
The fourth quarter decline matched the estimate published on February 15.
However, the annual decline in GDP was revised to 0.4 percent from 0.5 percent. In the third quarter, the economy grew 0.4 percent, revised up from 0.3 percent.
Final consumption expenditure fell 0.7 percent from a quarter ago after easing 0.4 percent in the third quarter. Likewise, gross fixed capital formation dropped 2.4 percent, sharper than the 0.6 percent decrease in the prior quarter.
The decline in imports rose to 2.5 percent from 1.2 percent. Meanwhile, exports remained stable after expanding 2 percent in the third quarter. In 2011, GDP grew just 0.4 percent, following a 1.8 percent expansion in 2010. The European Commission forecasts Italy to shrink 1.3 percent in 2012. At the same time, it sees only a mild recession in the Eurozone