Rome - Italy's economy has contracted for the second consecutive quarter, marking a recession that comes in the wake of the international credit crunch, the country's central statistics office said Friday.
Gross domestic product in the third quarter in Italy - the eurozone's third largest economy - shrank 0.5 per cent from the second quarter, when it contracted 0.4 per cent, the Rome-based Istat said.
The third quarter fell 0.9 per cent compared to the same period in 2007.
Italy follows Germany, Europe's largest economy, in posting two consecutive quarters of contraction - the technical definition of a recession.