Italy's economy contracted more than initially estimated in the fourth quarter of 2009, final report from the statistical office Istat showed Wednesday.

Gross domestic product, or GDP, fell 0.3% sequentially in the third quarter, slightly faster than a 0.2% drop estimated previously. Economists had expected the GDP figure to match preliminary estimate. The final quarter contraction follows a revised 0.5% growth in the third quarter, when the economy ended five quarters of negative GDP.

Compared to the third quarter, final consumption expenditure declined by 0.1% and gross fixed capital formation fell by 1%. Imports and exports increased by 3.2% and 0.1% respectively.

On an annual basis, the Italian economy contracted 3% in the December quarter, slowing the pace from a 4.8% drop recorded in the September quarter. Meanwhile, the initial estimate was a 2.8% fall. Annual GDP has been falling since the second quarter of 2008.

Over the whole year 2009, working days adjusted GDP declined by 5.1%, while non working days adjusted GDP dropped by 5%, Istat said.