Italy narrowly missed entering a technical recession in the third quarter (Q3) of this year, according to official data released Tuesday.
The Italian National Institute of Statistics (ISTAT) said its preliminary estimate for economic growth in the period between July and September was virtually unchanged compared to the previous three-month period, as well as compared to the same quarter in 2022.
The Italian economy has now expanded in only one of the last four economic quarters. However, it also avoided a technical recession, which is defined by contraction in several consecutive quarters.
The economy contracted by 0.4 percent in the second quarter of this year, grew by 0.6 percent in the first quarter, and shrank by 0.2 percent in the final quarter of last year.
The data released Tuesday is preliminary, and could see minor adjustments up or down.
Also on Tuesday, ISTAT said that its preliminary estimate showed the country’s annual inflation rate dropped dramatically to 1.8 percent in October, down from a 5.3-percent rate in September. This is the lowest rate in Italy since July 2021.
Compared to September, prices decreased by 0.1 percent in October. The main factor pushing prices lower in October was a decrease in energy prices, ISTAT said.
October was the first month in the Italian government’s « anti-inflation quarter, » which will artificially reduce consumer prices on a basket of basic necessities over the final three months of the year. It is unclear how much of the reduced inflation rate is due to the new measure.
Inflation in the eurozone also fell, data released Tuesday by Eurostat showed, although the reduction was not as dramatic as in Italy.
