The Italian economy contracted in the fourth quarter of 2018, plunging the country into a technical recession, official data showed Thursday.

The 0.2% contraction - following a 0.1% fall in the third quarter - will put pressure on the populist government in the eurozone's third largest economy, which took power in June on the back of big-spending electoral promises.

Italy's Prime Minister Giuseppe Conte had anticipated the bad news on Wednesday during a business conference in Milan.

"Analysts tell us we'll likely still suffer a bit at the start of this year," he said, pointing the finger at a slowdown in China and Germany which are hurting Italian exports.

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