Italy’s Economy Shrank 5% Even Before Full Lockdown Impact

Italy’s economy shrank about 5% in the first quarter in an early taste of the economic damage wrought by the coronavirus pandemic, according to the Bank of Italy.

The reading in the central bank’s economic bulletin covers a period before the full impact of the lockdowns that have shuttered businesses and kept residents at home. There were no estimates for the second quarter or the full year, with the BOI saying much will depend on the “swiftness and effectiveness” of the Italian and European response.