The Italian economy contracted for the seventh consecutive quarter in the first three months of 2013, preliminary estimates published by the statistical office Istat showed Wednesday.

Gross domestic product was down by a more-than-expected 0.5 percent from the previous quarter, but slower than the 0.9 percent decline seen in the fourth quarter of 2012. Economists had forecast a 0.4 percent fall.

Compared to the same period of previous year, the decline in GDP decelerated to 2.3 percent from 2.8 percent. The consensus forecast was for a 2.2 percent drop.

The statistical office earlier projected the economy to shrink 1.4 percent in 2013, but sees a gradual recovery next year.

RTTNews