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Eastday-Italy registers worst GDP drop since 1980
Italy's gross domestic product (GDP) fell 5.9 percent in the first quarter of this year compared to the same period last year, national statistics agency Istat said Friday.
This is the worst figure since 1980, Italy's ANSA new agency reported.
According to Istat, the country's GDP fell 2.4 percent over the previous quarter. If the current trend continues, Istat said, the GDP will fall 4.6 percent in 2009.
However,
Italian Premier Silvio Berlusconi said the drop had been expected and the situation would gradually improve later this year.
"
There is a crisis and the data released today was in line with what we expected. And although we are going through the worst crisis ever, the information we are getting from the business sector indicates that things are on the mend," Berlusconi said.
The government's latest forecast had predicted that GDP would tumble 4.2 percent in the first quarter. The 5.9 percent drop was the worst since the national statistics bureau began releasing the quarterly economic data in 1980.
The premier also said "
the psychological aspect is the most important factor in a crisis and this is why it is our job to promote optimism and confidence."