Special Report: Global Financial Crisis　

    ROME, Nov. 14 (Xinhua) -- Italian National statistics bureau Istat said Friday the Italian economy was in a recession, the first since 2005 and the worst since the end of 1992 and the start of 1993.

    According to Istat, Italy's GDP fell 0.5 percent in the third quarter compared to the previous quarter and 0.9 percent compared to the same quarter in 2007.

    The 0.5 percent drop followed a quarterly decline of 0.4 percent in the second quarter and was greater than the 0.3 percent retreat Istat had been expecting.

    The technical definition of a recession is when GDP falls for two quarters in a row.

    Even though the news on the economy is not good, and could get worse, the head of Italy's powerful industrial employers' association Confindustria, Emma Marcegaglia, said "it's best to avoid any panic."

    "What is important now is to support businesses and low-income families," the Confindustria chief added.

    Marcegaglia recalled that Confindustria had already presented the government its suggestions to boost the economy which included cutting corporate taxes, eliminating tax on reinvested profits and embarking on important infrastructure projects.

    "These measures will help Italy tackle and pull through the crisis," she claimed.

    One of Italy's leading consumer rights groups, Codacons, said the Istat GDP figures underscored the need to boost the available income families had for spending.

    The GDP figures, Codacons observed, "are very worrisome and confirm that Italy is in a full recession which is involving all sectors including agriculture, industry and services."