Italy Slides Into Recession as Europe Stalls, Stoking Global Fears

Growth within the eurozone itself was just 0.2 percent within the fourth quarter compared with the third quarter, the European Union statistics agency said. which rate matched the previous quarter’s, in addition to anemic as the item will be, the item might have been worse yet for Spain in addition to France. Spain’s economy grew at an unexpectedly strong clip, rising 0.7 percent within the fourth quarter compared with the third. in addition to in France, where the government has been struggling with mass public protests over economic duress, growth hit 0.3 percent.

Economists agree with Mr. Conte on one point — which China’s woes are weighing on Europe.

During the last decade, Europe profited coming from China’s push to modernize its infrastructure. China equals the United States as a customer for heavy-duty German machinery, like cranes, textile machines or equipment for steel mills, in addition to companies like Volkswagen have made the country a priority.

“the item’s our biggest market,” said Ralph Wiechers, chief economist at the Mechanical Engineering Industry Association, which represents German machine manufacturers. “We still have growth, yet we are noticing a lack of momentum.”

Critics of the Italian government blame its economic policies at home for its performance. Economists say the populist alliance has sowed uncertainty, prompting many Italians to spend less. A decline in consumer spending was a major culprit within the economy’s setback.

Carlo Cottarelli, a former director of the International Monetary Fund who led a spending review of the previous Italian government, reviewed the statistics on Thursday in addition to said the alliance, in power since June, was responsible for Italy’s slide. “which recession here, the item can’t be the fault of the previous government,” he told a radio station in Padua.

After a protracted fight last year with Brussels, Italy’s government increased spending for broader welfare programs in addition to generous pensions. The government, pulling together its first budget, assured Europe which its growth would certainly be much higher than estimated by experts — although the item blocked major infrastructure projects which could stimulate growth.