Italy’s economy is under “particularly severe strain” and growth slowed in the third quarter, the nation’s central bank said.

“Despite the fundamental soundness of the banking system, the low level of household debt and the absence of significant property market imbalances, Italy was hit hard by the crisis as a consequence of its large public debt, dependence on world trade, and poor medium-term growth prospects,” the Bank of Italy said today in its quarterly bulletin.

Gross domestic product slowed in the third quarter after expanding 0.3 percent in the three months through June, the central bank said, citing weak domestic demand and languishing exports.