Confindustria sees Italy's GDP down 9% in 2nd quarter

Industrial organization forecasts rebound in 3rd quarter

(ANSA) - ROME, JUN 22 - Industrial employers' confederation Confindustria said Monday that it estimates that Italian economy will have contracted 9% in the second quarter of this year after a 5.3% drop in GDP in the first.
    Confindustria's CSC research unit said in a report that it expects the April-June period to be the "minimum point" of the coronavirus-linked recession.
    It said the conditions were in place for a "rebound in the third quarter".
    But the report also said the recovery would be "fragile" amid an "uncertain world scenario" and stressed that the "restart is difficult for industry and services" in Italy.
    Earlier on Monday retailers association Confcommercio said that it estimates Italy's GDP will have fallen 17.4% in the second quarter of 2020 with respect to the first and by 21.9% compared to the same period in 2019.
    Confcommercio's research unit also said consumer spending fell by 29.4%.in May and by 47% in April.
    It said businesses linked to leisure were the hardest hit, suffering a 92% drop in business.
    Next were hotels, bars and restaurants, down 66%, and clothing outlets, down 55%.
    Confcommercio President Carlo Sangalli welcomed the fact that Premier Giuseppe Conte has said his government is considering cutting value-added tax to help the recovery from the economic earthquake caused by the coronavirus pandemic.
    "The government's hypothesis of supporting consumer spending and domestic demand by reducing VAT is a good one," he said. "It should not be an excessively provisional measure though".
    (ANSA).
   

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