Italy’s economy has experienced a drastic but not unexpected slump of 12.4% in the second quarter. The contraction comes amid the economic crisis provoked by coronavirus and lockdown.
Despite Italy’s National Institute of Statistics (ISTAT) calling the drop in gross domestic profit (GDP) “unprecedented”, the fall is less than analysts had predicted.
ISTAT reported that all sectors have suffered from the slump. All but essential businesses in Italy were forced to close for two to three months during COVID-19 lockdown, a blow to much of the economy.
With travel restrictions still in place, Italy’s tourism industry, which represents around 13% of the country’s GDP, is struggling.