Italy dipped into recession in the second quarter of the year as the economy shrank 0.1 per cent, data from national statistics agency Istat showed today.
The euro zone's third-largest economy also shrank 0.1 per cent in the first quarter of the year. Istat said it is the first time Italy's gross domestic product (GDP) has posted two straight quarters of negative growth since 1992.
Italy is the first of the big three euro zone economies to report second quarter GDP.
Germany is expected to show stagnation at best quarter-on-quarter, with several think-tanks predicting a slight contraction for the second quarter in a row.
Economists said the dismal performances could indicate a rate cut by the ECB on the horizon.
Shrinking exports due to a strong euro also weighed heavily on second quarter Italian GDP.