Italy recorded a drop in its gross domestic product of 8.9% in 2020, under the effect of the economic shock caused by the Covid-19 pandemic, according to a first estimate published on Tuesday by the National Institute of Statistics ( Istat).
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This plunge is less pronounced than that expected by the Bank of Italy and the International Monetary Fund (IMF), which forecast a drop of 9.2%.
The Italian government expected a drop in GDP of 9%.
The peninsula nevertheless posted one of the worst drops in GDP in the euro zone, behind Spain, whose economy collapsed by 11% in 2020. France saw its GDP plunge by 8.3% in 2020 and the Germany by 5%.
To revive the battered economy, the government is counting on a plan of more than 200 billion euros financed by the European Union, but the ongoing political crisis casts doubts on the country's ability to implement it.
In the fourth quarter, Italy's GDP fell by 2% compared to the previous one, according to Istat.
Here again, the fall is smaller than expected by the Bank of Italy, which had forecast a decline of 3.5%.
Italy's GDP rebounded 16% in the third quarter, according to a figure revised upwards by Istat, after the easing of restrictive measures taken in the context of the pandemic.
The first country affected by the pandemic in Europe, Italy had imposed strict containment in March and April, paralyzing a large part of its economic fabric.
The companies had gradually resumed their activities at the end of April.
But the health situation deteriorated again in October, prompting the authorities to adopt new restrictive measures.
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The third largest economy in the euro area is expected to grow by 3.5% this year, according to estimates by the Bank of Italy.
The government was more optimistic, counting on an increase of 6% in its latest forecast published in October.
For the European Commission, Italian GDP is expected to grow by 4.1% in 2021, while the International Monetary Fund (IMF) forecasts an increase of 3%.
Contrary to its European neighbors, Italy on Monday relaxed the anti-Covid restrictions in force in most of its regions, allowing in particular the reopening to the public of bars and restaurants.
