OECD: Italy GDP to Contract by 0.2% — Worst Since 2013

Finally, the I in PIGS is barreling back towards perdition. According to the OECD, Italy’s economy will contract this year — marking its worst showing for Europe’s largest indebted nation since 2013.

The OECD slashed its forecast for the Italian economy to a 0.2 percent contraction this year, reflecting the effects of the global trade slowdown.

Italy fell into recession at the end of 2018, and is still battling the slump despite a recent increase in exports, fixed investment and domestic consumption. Premier Giuseppe Conte’s government has been dismissive of economists’ negative outlooks, saying output will increase later this year.

Italy’s projected 0.2 percent contraction this year would be the worst performance since the country’s output fell 1.7 percent in 2013. The latest figure compares with 0.9 percent growth foreseen by the OECD in November.

The Paris-based organization said Italy will return to growth next year, but with only a 0.5 percent expansion.

The OECD did see some bright spots for Italy, including lower headline inflation and supportive fiscal measures.

Recession is the trick word here. This should also pair wonderfully with the specter of a ‘COMPLETELY INSANE’ debt plan by their new populist government.

This from October of last year.

Amongst all European countries, Italy is the worst, financially. I’m sure none of this means anything to the likes of you — boozehounds only intrigued by events happening in real time — unable or willing to extrapolate the details of something so insidious as this — it menaces all with the prospects of perfidy.