Italy still lagging despite best growth in 6yrs

Italy posted its best annual economic growth figures since 2011, with its official gross domestic product forecasts to increase by 1.5% on an annual basis.

Improved domestic demand for industrial products and in the services sector resulted in an improvement in the second quarter, said National Secretary of Statistics ISTAT.

Analysts interpreted the recovery as reflecting a recovery in business confidence which was aided by negative concerns about the stability of the country's banking system.

But they warned that the fourth largest economy in Europe was still lagging behind its partners in the euro area as it struggles to repair the damage caused by a lost decade of economic stagnation Or recession.

The performance of the second quarter "makes it almost certain that GDP growth will exceed official projections by 1.1% for the whole year," said Lorenzo Codogno, former chief economist at the Italian Ministry of Finance.

"Consensus expectations are catching up, but there is still a lot of skepticism about Italy's performance in advance."

In the first half of 2017, growth was 1.2 percent, according to ISTAT.

In its first estimate of the second quarter activity, the data body said the economy grew by 0.4% over the first three months of the year, year.

This is well below the euro area average of 0.6% quarterly growth and annual growth of 2.2%.

The figures have nevertheless been announced by a center-left government prepared for the elections scheduled for March or April of next year.

"Growth above expectations, a good basis for stimulating the economy and employment," Prime Minister Paolo Gentiloni said on Twitter.

The government had foreseen a 1.1 percent increase in GDP this year, while the European Commission expected it to increase by 0.9 percent and that the International Monetary Fund Increased by 0.8%.

Source link