Italy has imposed sweeping nationwide restrictions on travel and public life, a desperate attempt to contain the coronavirus outbreak that looks set to plunge the world’s eighth largest economy into a steep recession.
The measures announced late Monday include travel restrictions on 60 million residents, a ban on public events, the closure of schools, movie theaters, museums and gyms, and limits on opening hours for restaurants, bars and shops.
The government took action as the number of deaths caused by coronavirus reached 463 and infections topped 9,000, more than double the number reported in China as a share of the population. The restrictions are in place until at least April 3.
Taken together, the unprecedented measures are likely to push an economy that contracted in the final three months of 2019 into a sharper downturn that will put Italian hotels, travel companies and restaurants under intense pressure.
Jack Allen-Reynolds, senior Europe economist at Capital Economics, said Italy’s economy will contract sharply in the first half of the year even if the restrictions are lifted at the end of April, with GDP declining about 2% for all of 2020.
The hit to GDP will be “much bigger” if the restrictions are extended until the end of June, he added.
“This does not take account of the impact on the banking sector … the spillovers from the impact of the virus on other parts of the eurozone, or the potential supply-chain disruption if the virus really takes off in Germany and other key trade partners,” he added.
Source: Italy’s lockdown could tip the country into recession
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