- Prior +0.6%
- GDP +5.8% vs +5.8% y/y expected
- Prior +6.2%
Italy's economy shrank in Q1 as the omicron impact, high commodity prices and the Russia-Ukraine conflict weighed on activity. This marks the first decline since Q4 2020, matching estimates going into the release.
There is no breakdown of the above estimate but Istat did say that industrial activity stagnated in the first three months while services activity contracted. Given rising cost pressures, the latter could still be pressured in Q2 and increases risks of a recession.
