Forexpros – Italy’s economy contracted more-than-expected in the final three months of 2011, official preliminary data showed on Wednesday.
In a report, ISTAT, Italy’s statistical office said the country’s gross domestic product contracted by a seasonally adjusted 0.7% in the fourth quarter of 2011, disappointing expectations for a 0.6% contraction.
Italy’s economy contracted by an unrevised 0.2% in the preceding quarter.
Annualized GDP shrank at a rate of 0.5%, worse than expectations for a 0.3% decline, after rising at a rate of 0.3% in the third quarter.
Following the release of the data, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.2% to trade at 1.3161.
Meanwhile, European stock markets were broadly higher. Italy’s FTSE MIB 40 climbed 0.95%, the EURO STOXX 50 advanced 0.75%, France’s CAC 40 rose 0.87, Germany’s DAX rallied 1%, while the FTSE 100 added 0.2%.
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