Istat says Q1 flat in Italy, technically no recession

(ANSA) - Rome, October 15 - The Italian economy was flat in the first quarter of the year, rather than falling by 0.1% as previously thought, according to new measurements, national statistical agency Istat said Wednesday. That suggests the country is technically not in recession, which is defined by two consecutive quarters of negative growth.
    Instead, gross domestic product (GDP) between January and March of this year was unchanged from the -0.1 decline recorded in the final quarter of 2013, it5 said.
    Istat has been revising its measurements of the economy to take account of the impacts of illegal activities such as prostitution and drugs, in line with European standards.
    The agency also noted that the economy has shown no growth since the second quarter of 2011, revealing an extended period of stagnation.
    Istat also announced that revisions show GDP fell in the second quarter of 2014 by 0.3% compared with the same time last year, and fell by 0.2% compared with the previous quarter.
    The statistics come as Premier Matteo Renzi announces his 2015 budget which is expected to include some 30 billion euros in adjustments aimed at boosting the sluggish economy, despite pressure from the European Union to focus on reducing debt.