Industrial production in Italy declined in May 2016

Industrial production in Italy

Industrial production in ItalyIndustrial production in Italy declined in May 2016 and creates additional difficulties for the plans of Prime Minister Matteo Renzi to revive the economy. The decline amounted to 0.6% compared to April, when increased by 0.4%. The median forecast of economics analysts was for growth of 0.1% in May. On an annual basis after smoothing the data for the number of working days, industrial production decreased by 0.6%. Moreover, gross domestic product rose 0.3 percent during the three months ended March, compared to the previous quarter, but Istat last week said the growth is expected to slow down in the near term, as per its composite forward-looking indicator.

“The repercussions from the U.K. referendum affect the euro area in a difficult moment”, said the Bank of Italy Governor, Ignazio Visco. “The economic recovery is under way, but it is fragile; unemployment remains high; inflation remains very low”, added he.

The International Monetary Fund (IMF) expects the Italian economy to expand by 1.1% this year, which would be less growth than most countries in the Eurozone. The threat of crisis in the Italian banking sector and uncertainty after the British referendum more difficult Matteo Renzi to promote growth.

The Italian economy is the third largest in the 19-nation currency bloc and returned to growth last year, emerging from the longest recession since World War II.

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