Italy’s economy faces recessionFebruary 15, 2012 - 15:20 AMT PanARMENIAN.Net - The Italian economy entered its fourth recession since 2001, contracting more than economists forecast in the fourth quarter as government austerity measures weighed on growth, according to Bloomberg. Gross domestic product declined 0.7 percent from the previous three months, when it shrank 0.2 percent, national statistics institute Istat said in a preliminary report in Rome. The Italian slump contrasted with better-than-forecast performances by the French and German economies in the fourth quarter. France unexpectedly expanded 0.2 percent, while Germany contracted 0.2 percent. Prime Minister Mario Monti, who took over after Silvio Berlusconi’s resignation in November, pushed through 20 billion euros ($26 billion) in spending cuts and tax increases in December. The government also approved measures to boost competitiveness and cut red tape in an attempt to spur growth in the euro-region’s third-biggest economy. The government projects GDP to fall 0.5 percent this year, while the International Monetary Fund forecasts a contraction of 2.2 percent. Bank of Italy Director General Fabrizio Saccomanni told reporters in Rome last week that he expects the economy to shrink as much as 1.5 percent in 2012. Monti’s attempt to spur the growth needed to reduce Italy’s $2.5 trillion debt, about four times the size of the EU’s bailout fund, may be vital to preventing a break-up of the 17- nation euro region Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |