Italy's economy dwindles suddenly in Q2 due to low domestic demand

Posted on August 4, 2023   |  

In Q2, Italy’s economy declined due to low domestic demand, total exports failed to contribute to growth and GDP fell by 0.3% compared to the last 3 months.

Soaring interest rates, weak global export demand, and the revoked of fiscal support are starting to affect the economy.

The economy could grow by 1.4% in 2023, boosted by summer tourism, which will be a help in H2 2023, but the China-led global downshift for manufacturing is having an effect.

In the eurozone, in Q2, the economy grew by 0.3%, in which France and Spain saw growth, overpowering the recession in Germany and Italy’s decline.