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UPDATE 1-Italy Q2 GDP revised down to 12.8% q/q, domestic demand slumps in virus-hit economy

(Adds Q1 GDP data)

ROME, Aug 31 (Reuters) - Italy’s economy shrank a downwardly revised 12.8% in the second quarter from the previous three months, national statistics bureau ISTAT said on Monday, the steepest recorded drop in gross domestic product as the coronavirus crisis lacerated the country,

ISTAT originally estimated GDP fell 12.4% in the second quarter.

On a year-on-year basis, GDP in the April-June period was revised down to -17.7% compared with the -17.3% printout in ISTAT’s flash estimate on July 31.

Analysts polled by Reuters had predicted a 12.4% contraction quarter-on-quarter and an 17.3% drop year-on-year.

The first quarter figures were revised to -5.5% quarter-on-quarter from a previously reported -5.4% and to -5.6% year-on-year from -5.5%.

The breakdown of GDP components showed consumer spending fell 8.7% quarter-on-quarter, fixed investments were down 14.9%, imports slumped 20.5% and exports plunged 26.4%.

Economy Minister Roberto Gualtieri said earlier this month that Italy’s economy had held up better than expected and predicted that the third quarter would show “a very strong rebound” in growth.

Italy’s official forecast is for a full-year drop in gross domestic product of 8% this year, though Gualtieri has said this will probably have to be revised lower. The Bank of Italy has forecast negative growth of -9.5% and the International Monetary Fund -12.8%

ISTAT gave the following details on contributions to quarterly growth in the second quarter and first quarters of the year.

PERCENTAGE POINT CONTRIBUTIONS TO Q/Q GROWTH

Q2 2020 Q1 2020 Final domestic demand -9.5 -5.6 -Final national consumpton -6.9 -4.2 -Consumer spending -6.7 -4.0 -Government spending -0.2 -0.2 -Gross Fixed Investment -2.6 -1.4 Inventory Changes -0.9 +1.0 Net Exports -2.4 -0.9 GDP -12.8 -5.5 (Reporting by Crispian Balmer)

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