Italy's economy fell into recession in the final three months of last year, contracting for the second consecutive quarter.
The economy shrank 0.7% in the fourth quarter from the previous three months, data from national statistics institute Istat showed Monday. The final figure, adjusted for seasonal factors and the number of working days, confirmed the preliminary figure released Feb. 15.
Fourth-quarter GDP marked a 0.4% drop from the same period a year earlier, Istat said, revising upward the preliminary figure of a 0.5% decline.
Italy's economy grew 0.5% for the whole of 2011, Istat said, revising up a preliminary reading of a 0.4% growth.
All indicators signal that Italian GDP will shrink further in early 2012 as fiscal austerity crimps domestic demand and a slowing global economy reduces the opportunity for export-led growth.
The International Monetary Fund said it expects the euro-zone's third-largest economy to contract 2.2% this year. The government has forecast a decline of around 0.4% or 0.5%.
Italian industrial output fell much faster than expected in January, led by a drop in investment goods and consumer goods, fueling concerns that a recession this year could be stronger than the government has estimated.
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