The Italian economy is at risk of a second recession, with a contraction forecast in the fourth quarter due to soft lockdown measures to counter a resurgence of the coronavirus, industry lobby Confindustria said in a report.
The impact of the lockdown in regions including Lombardy -- home of the financial capital Milan -- should be contained compared with the decline in gross domestic product in the first two quarters of 2020, given that many businesses remain open, Confindustria said Saturday.
A rapid rebound in industrial output was interrupted in September and October, and there could be a moderate decline in the fourth quarter, the report said.
The Italian government is seeking parliamentary approval for 8 billion euros ($9.5 billion) of extra deficit this year, as Prime Minister Giuseppe Conte battles to shield the fragile economy from the pandemic. Conte’s cabinet approved the request to parliament late Friday night.
The government also signed off on a third package of aid, worth 1.95 billion euros, for 2020, mainly for shops and businesses hit by the lockdown.
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