Italy’s First-Quarter Slump Was Deeper Than Estimated at 5.3%

(Bloomberg) --

Italy’s economy shrank more than initially estimated in the first quarter, reflecting coronavirus restrictions that started to be implemented earlier than in many other countries.

Gross domestic product shrank 5.3%, revised from 4.7%, statistics office Istat said Friday. The figures will add to the existing gloom about Italy’s economy, which may shrink at least 10% this year.

The European Union this week unveiled a new aid fund for the region, from which Italy will get more than 80 billion euros. The country has been hard hit by the virus, and its existing debt burden is limiting its capacity to respond without raising investor concern.

The Istat data showed that consumer spending fell 5.1% in the first quarter, while investment dropped more than 8%.

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