Italian economy begins recovery

Italy's economy has emerged from its longest post-war recession in the fourth quarter of 2013 with 0.1 per cent growth.

Italy's economy began a gradual recovery in the fourth quarter of 2013 with 0.1-per cent growth - the first positive result after its longest post-war recession, official data from the Istat agency shows.

The slight rise in Italy's gross domestic product (GDP) comes after eight quarters of contraction in a row and one of zero growth in the third quarter of the year, when the devastating recession formally ended.

The preliminary estimate on Friday, which was in line with analyst expectations, also showed that the economy contracted by 1.9 per cent over the whole of 2013 following a shrinkage of 2.5 per cent in 2012.

The government has said it is hoping for growth of around 1.0 per cent this year and the Bank of Italy is predicting a 0.7-per cent result but the International Monetary Fund is predicting only 0.6 per cent growth.

The result comes on the day that Prime Minister Enrico Letta is set to resign following a rebellion within his Democratic Party that could propel to power the party's leader, the 39-year-old mayor of Florence Matteo Renzi.


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Source: AAP


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