Rome, March 4 : Italy's economy contracted by 0.1 per cent quarter-on-quarter in the final three months (Q4) of last year, the country's National Institute of Statistics (ISTAT) said.

On a year-on-year basis, gross domestic product (GDP) in the quarter increased by 1.4 per cent, against the originally estimated 1.7 per cent, reports Xinhua news agency citing ISTAT as saying.

The country could thus be in the midst of a technical recession since the economy is widely seen as contracting again in the current economic quarter.