Italy's has slumped back to recession, heaping more weight on its young prime minister Matteo Renzi to push the country ahead with a belligerent reform program in the midst of mounting domestic criticism of his lack of making up to it.
Italy, which is the eurozone's third-largest economy dwindled 0.2 for every cent in the second quarter, Istat, Italy's national statistics office announced on Wednesday, its second sequential quarter of negative growth after the economy shriveled 0.1 for every cent in the first three months of the year. The growth is Italy's weakest since 2000, Istat said, as indicated by Ansa, Italy’s news agency.
Economists suppose the most recent figure will incite Italy’s administration to reconsider downwards its 2014 growth forecast of 0.8 for every cent. The forecast comes above the evaluations made by the Bank of Italy and the national business association, both having expected close to a 0.2 for every cent rise before the end of 2014.
Italy was one of the few countries to have surfaced above the two-year recession in the last quarter of 2013, and declining figures over the previous weeks have demonstrated the economy is attempting to restore after 10 years of zero ostensible growth.
Economy pundits have blamed Mr Renzi for being made up for lost time in showcase reforms, for example, a fight over a redo of the Senate and having neglected to implement real reform, for example, of the working class sector or a redesign of administration.
“Italy is stuck in stagnation and has been stuck in stagnation for a year after eight quarters of recession,” said Francesco Daveri, an Italian economist. “This raises the urgency for Renzi to deliver; that means that he has to deliver on the economy side and make real reforms”.
Pier Carlo Padoan, Italy's finance minister, in a meeting with Il Sole 24 Ore on Wednesday, conceded Italy was attempting to rise up out of recession yet said it didn't require the "troika" of Brussels, the International Monetary Fund and the European Central Bank to implement economic reform.
“The country must reform itself by itself, and we are doing it, but we must be in even more of a hurry to do so,” he said.
Since taking office in February Mr Renzi has vowed spending cuts, tax reductions, privatizations and measures that would be used for restoring development and creating employments, in an economy with a 43.7 for every penny youth unemployment rate. Hitherto his change plan has brought about his administration passing a cut in income taxes for low-salary laborers, worth yearly some €10bn and went for fortifying domestic requirement.