Italy statistics bureau hikes 2021 growth forecast as COVID clouds clear By Reuters

Italy statistics bureau hikes 2021 growth forecast as COVID clouds clear By Reuters

© Reuters. FILE PHOTO: The Unicredit headquater (C) is seen at Porta Nuova’s district downtown Milan, Italy, January 13, 2016. REUTERS/Stefano Rellandini

(Refiles to fix typo in headline)

ROME (Reuters) – ROME, June 4 (Reuters) – The Italian economy, will grow by 4.7%this year, national statistics bureau ISTAT said on Friday, raising a previous projection of 4.0% made in December as the country’s coronavirus crisis eases.

In its twice-yearly economic outlook report, ISTAT forecast that gross domestic product will increase by 4.4% next year.

The institute’s latest projections are fairly close to those of Mario Draghi’s government, which sees growth of 4.5% this year and 4.8% in 2022.

The sustained economic expansion forecast by ISTAT this comes on the back of the 8.9% contraction in 2020, a negative post-war record, when the euro zone’s third largest economy was hobbled by lockdowns to try to contain the coronavirus.

Growth over the next two years will be “due to domestic demand, led by investments and, to a significant but lesser extent, by consumer spending,” ISTAT said in its twice-yearly report.

Trade flows will offer only a marginal contribution to growth this year, it said, and will be a drag on growth in 2022.

Draghi has been easing COVID-19 restrictions since April in response to a steady decline in new infections and daily deaths.

Italy reported 59 coronavirus-related fatalities on Thursday, and 1,968 new infections.

The International Monetary Fund on Thursday forecast Italian growth of 4.3% this year and 4.0% in 2022.

The economy grew by 0.1% in the first quarter from the previous three months due to higher investments and inventories, ISTAT reported on Tuesday, sharply raising a preliminary estimate for a 0.4% contraction.

The unusually strong revisions, which took the country out of recession, significantly increased the possibility of hitting Rome’s 4.5% full year growth target.

ISTAT forecast an average jobless rate of 9.8% this year, down from its December projection of 11.0%. It projected an average rate of 9.6% for 2022.

The unemployment rate stood at 10.7% in April, ISTAT reported on Tuesday, the highest reading since October 2018.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *