Italy: Economy contracts again - Rabobank

Rabobank analysts note that the Italian economy has contracted again in the fourth quarter of 2018 as weakening domestic demand seems to be the culprit.

Key Quotes

“Forward-looking indicators and industry expectations signal no quick rebound from disappointing growth figures.”

“New budgetary issues are likely to raise concerns among market participants later this year.”

“Growth is forecasted to be flat in 2019 in light of weak demand, both domestic and abroad, and uncertain policy outcomes.”

“The probability of a coalition break-up is low, but looks set to increase after the European Parliament elections.”