Italian Treasury Predicts Economic Contraction

The latest forecasts from the Italian Treasury indicate the possibility of a contraction in the Italian economy in the third quarter of the year, which is expected to continue into the following two quarters. The predictions suggest that the third largest economy in the Eurozone, which has been affected by rising energy costs and record-high inflation, is heading towards a technical recession defined by economists as two consecutive quarters of declining GDP. The economy fared better than expected in the first half of the year, with GDP jumping 1.1 percent in the second quarter compared to the previous three months. However, the economic and financial document released late Friday stated that the downturn has already begun. These forecasts present a grim legacy for Giorgia Meloni, who is widely expected to be appointed Prime Minister this month after leading a right-wing coalition to victory in the September 25 elections.