ROME (Reuters) -Italy’s economy shrank 0.1% in the fourth quarter of last year from the previous three months, national statistics bureau ISTAT said on Friday, confirming a flash estimate issued on Jan. 31.
The breakdown of GDP components showed a positive contribution came from trade flows, outweighed by a decline in domestic demand.
The contraction came after seven positive quarters, ISTAT noted.
The Treasury estimated in November that the economy would contract in the fourth quarter of last year and also in the first quarter of 2023, putting the country in recession – defined as two consecutive quarters of falling GDP.
On a year-on-year basis, fourth quarter gross domestic product was up 1.4%, revised from an originally estimated 1.7% issued at the end of January.
Industry and agriculture declined during the quarter, while the service sector expanded year-on-year.
Growth in the third quarter was revised down to 0.4% quarter-on-quarter from an originally reported 0.5%, and to 2.5% year-on-year from 2.7%.
In the fourth quarter, consumer spending fell 1.1% quarter-on-quarter, government spending grew 0.5% and investments were up 2%.
Imports fell 1.7%, exports were up 2.6%.
(Reporting by Antonella CinelliEditing by Keith Weir)
