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Italy statistics bureau hikes 2021, 2022 GDP growth forecasts on stronger domestic demand – Metro US

Italy statistics bureau hikes 2021, 2022 GDP growth forecasts on stronger domestic demand

Offices are seen at the City Life district in Milan
Offices are seen at the City Life district in Milan

By Gavin Jones

ROME, Dec 3 (Reuters) – The Italian economy will grow by 6.3% this year, national statistics bureau ISTAT said on Friday, revising up a previous projection of 4.7% made in June due to an acceleration of domestic demand and world trade.

In its twice-yearly economic outlook report, ISTAT forecast that gross domestic product will increase next year by 4.7%, raising its June forecast of 4.4%.

The institute’s latest projections are broadly in line with those of Mario Draghi’s government, which sees officially sees growth of 6.0% this year and 4.7% in 2022.

Draghi and other ministers have said recently this year’s growth will exceed the official 6.0% target, which was made at the end of September.

The increase in GDP this year and next “will be determined mainly by the contribution of final domestic demand, accompanied by a more modest contribution from net exports,” ISTAT said.

The economy grew by 2.6% in the third quarter this year from the previous three months mainly due to strong consumer spending, the statistics bureau said on Tuesday, following a 2.7% GDP rise in the second quarter.

Last year, when the economy was hobbled by coronavirus lockdowns, recorded a record GDP contraction of 8.9%.

ISTAT estimated an average jobless rate of 9.6% this year, down from its June projection of 9.8%. It cut its 2022 forecast to 9.3% from 9.6%.

The unemployment rate stood at 9.4% in October, ISTAT reported on Thursday, the highest reading since June.

(Reporting by Gavin Jones)

((gavin.jones@reuters.com))

Keywords: ITALY ECONOMY/FORECASTS

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