Italy fell into recession in the third quarter, with the economy contracting 0.5% from the second quarter when it shrank 0.4%.
The preliminary estimate was much steeper than expected for the euro zone's third largest economy and comes the day after official figures showed Germany's economy shrinking for the first time in five years.
The recession is the first in Italy in four years and the contraction of 0.5% is the deepest in 10 years, according to the national statistical agency ISTAT, which is to confirm the figures on December 10.
The figures reflect across-the-board performance, notably a 'lower value added in agriculture, industry and services,' ISTAT said.
Italy's last recession was in the fourth quarter of 2004 and the first quarter of 2005, with contractions of 0.2% and 0.1% respectively.
A Dow Jones Newswires consensus had forecast a 0.2% contraction for July to September 2008.
Third-quarter performance was down 0.9% compared with the same period of 2007, against a forecast of 0.3%.
The government in September - before the full extent of the world financial crisis became apparent - officially forecast growth of 0.1% this year and 0.5% in 2009.
The International Monetary Fund was much more pessimistic, predicting that GDP would shrink 0.2% in 2008 and 0.6% next year.
The European Union, for its part, has forecast zero growth for both years.
