Economics
Italian Economy Unexpectedly Stalls in Setback for Populists
- GDP failed to rise in third quarter for first time since 2014
- Government’s fiscal plans have pushed bond yields higher
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Italy’s economy stalled for the first time in almost four years, putting pressure on the populist government’s ambitious spending plans.
The government acknowledged that the unexpected stagnation in the third quarter was a concern. Deputy Finance Minister Massimo Garavaglia said in an interview it signals the need for more public and private investment at a time when cooling global trade has hit exports.