Household saving in Italy drops to lowest level

Household savings in Italy have reached the lowest level since 1995, national statistics agency Istat said on Thursday. In 2011, Italian families set aside 12 percent of their income, down 0.7 percent compared to 2010, according to a statement released by the agency. In the same year, domestic buying power dropped by 0.5 percent despite the disposable income grew by 2.1 percent. According to Italy's central bank, household incomes decreased 4 percent between 2008 and 2009, while the national gross domestic product (GDP) also fell by 6 percent. Crisis-hit Italy slipped into technical recession in the second half of last year with its GDP declining for two consecutive quarters in the third and fourth quarter.