Italian, Spanish Growth Sluggish as Crisis Threatens Recovery

Italian and Spanish economic growth remained sluggish with weak domestic demand complicating efforts to convince investors the countries can expand enough to reduce debt and avoid becoming victims of Europe’s sovereign crisis.

Gross domestic product in Italy rose 0.3 percent in the second quarter from the previous three months, when it grew 0.1 percent, Rome-based national statistics institute Istat said today. Spanish GDP expanded 0.2 percent from the January-March period, when it increased 0.3 percent, the Bank of Spain estimated today. Industrial output fell in June in both countries and in Germany, separate reports showed today.