Italy has posted a record economic contraction as household spending and investment crashed during the country's coronavirus lockdown, driving the eurozone's third largest economy deep into recession.

According to AFP, the country's gross domestic product fell by 12.8 per cent in the second quarter compared to the previous quarter and by 17.7pc versus the same period last year, national statistics agency Istat said.

“The full estimate of the quarterly economic figures confirm the exceptional extent of the drop in GDP in the second quarter, due to the economic effects of the health emergency and the containment measures adopted,” Istat said.

The contraction was even worse than predicted in July, when Istat estimated a second quarter drop of 12.4pc.