The Italian Government has advanced today that the Gross Domestic Product (GDP) of the fourth quarter of 2018 will be predictably negative, which will mean that the country is officially in a technical recession, after the also negative data of the third quarter of the same year. The provisional GDP figure for the fourth quarter of 2018 will be known tomorrow, but the government already expects it to be negative, which will mean a blow to the Italian economy, after that in the third quarter it registered a drop of 0.1% compared to the previous.
The fact that the country accumulates two quarters in negative, said sources of the Executive, is due to the "bad management of past administrations" and unfavorable conjunctural data, since the two formations that run the country, the antisystem Movement Five Stars (M5S) and the extreme right-wing Liga, they have just approved their General Budgets and he has not had time to see the results.
Italian Prime Minister Giuseppe Conte defended his administration's action in Milan today and argued that negative economic data is affecting Italy's economy. "We have conjunctural data that are not favorable, we should not look the other way, the positive fact is that it does not depend on us," Conte said, while noting the cases of Germany, which today reduced its growth forecast for 2019 to 1% of GDP, compared to 1.8% initially estimated, or China, which is experiencing an economic slowdown.
The Italian government estimates that the country's economy will grow by 1% in 2019, while the Bank of Italy and the International Monetary Fund (IMF) are less optimistic and believe that it will only do so by 0.6%.