Economics
Italy Is Teetering on Verge of a Recession
- Coalition says expensive policies needed to stimulate growth
- Euro-area slowdown, budget battles are hurting economy
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Italy’s populist government has a new problem brewing as it faces the risk that it could soon be dealing with the country’s first recession in five years.
The economy unexpectedly shrank in the three months through September and surveys suggest the weakness is persisting. Manufacturing contracted at the fastest pace in four years in November and services companies have seen export demand fall for five straight months, according to reports this week from IHS Markit.