(MENAFN- Kuwait News Agency (KUNA)) As the economy shrinks, the public debts of Italy grew to almost EUR two trillion, an all-time record high, the country's central bank "Bankitalia" cautioned in a report on Tuesday.
The austerity measures adopted by the government early this year failed to curb the impacts of financial turmoil in the Eurozone or catalyze economic growth.
The nominal value of the public debt grew by EUR 11 billion in two months from the reference point of EUR 1.935 billion registered in last January, hitting EUR 1.946 billion in March; in February it grew by EUR 18 billion, according to the report.
The net value of deposits at the bank declined unexpectedly in the first quarter of the year by 0.5 percent to some EUR 83.2 billion compared to the corresponding period of last year.
Meanwhile, the National Institute of Statistics (Istat) said the country's GDP shrank in Q1 for the third quarter of a year running by 0.8 percent down from the 1.3 percent level of Q4, 2011, the worst level since 2009.
The figures show that the Italian economy is on the verge of recession and needs at least EUR seven billion to reach the target of curbing the budget deficit.
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