2 percent GDP decline in fourth quarter
Italy's economy contracted sharply at the end of 2020 due to the restrictions in the corona lockdown. The gross domestic product (GDP) fell by 2.0 percent between October and December compared to the previous quarter, according to the national statistical office Istat. Economists had expected a minus of 2.2 percent.
In 2020 as a whole, the economy in the eurozone's third-largest economy after Germany and France slumped by 8.8 percent and thus more sharply than ever since the Second World War. For comparison: the German economy grew by 0.1 percent in the final quarter despite the lockdown and shrank by five percent in 2020.
Italy was hit particularly hard by the virus pandemic and has also slowed the economy with massive restrictions on public life. In addition, there is currently a government crisis. Prime Minister Giuseppe Conte resigned after his coalition collapsed. However, observers assume that the independent law professor could receive the mandate from President Sergio Mattarella to forge a new government alliance. Mattarella had recently signaled that a new government could solve the political crisis with the previous coalition partners.
