Italy has left the recession

After the recession in the second half of the year, the Italian economy managed to grow again in early 2019. The volume of gross domestic product in the euro area's third largest economy increased 0.2% from January to March compared to the previous quarter. Analysts had expected only a 0.1 percent growth.

In the third and fourth quarters of last year, the Italian economy shrank 0.1 percent. When the volume of economic activity shrinks for two consecutive quarters, analysts speak of a "technical recession."

Economic growth was stimulated by foreign trade earlier this year, Italian statistical office Istat commented on the publication of the first estimate of economic growth. But domestic demand has deteriorated.

In comparison year by year, Italy achieved economic growth of 0.1% in the first quarter. Analysts had expected to shrink 0.1 percent, according to the German news agency DPA.

Growth is still weak

Despite a slight recovery, Italy's economic growth remains relatively weak. The euro area accelerated its growth to 0.4 percent in the first quarter, after being 0.2 percent in the last quarter of last year, Eurostat said today. Italy is the only country to go into recession in 2018.

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In Italy, however, not only the weak chronic economic growth, but also the country's high debt. This represents more than 131% of gross domestic product, the highest in the euro zone immediately behind Greece. The populist government, which has been in power since the middle of last year, wants to boost growth through, among other things, lower taxes and larger social transfers, receiving more debt.

The high growth of Spain

With high economic growth, Spain can boast in the first quarter of this year. At 0.7 percent from the previous quarter, it was the largest in more than a year. However, Spain has the second highest unemployment rate in Greece.

The first data on economic growth in the first quarter of this year were also published by the French Insee Statistical Office. As in the third and last quarter of 2009, France also achieved economic growth in the first quarter of this year of 0.3%.