Italy still lagging despite best growth in 6 years

AFP, ROME: Italy posted yesterday its best annual economic growth figures since 2011 with its gross domestic product outdoing official forecasts to grow 1.5 per cent on an annual basis.

Improved domestic demand for industrial products and in the service sector drove the improvement in the second quarter, national statistics body ISTAT said.

Analysts interpreted the pick-up as reflecting an upturn in business confidence that has been helped by receding concerns over the stability of the country’s banking system.

But they warned that Europe’s fourth biggest economy was still lagging behind its partners in the eurozone as it battles to repair the damage done by a lost decade of economic stagnation or recession.

The second quarter performance “makes it almost certain that GDP growth will exceed official projections of 1.1 per cent for the whole year,” said Lorenzo Codogno, a former chief economist at the Italian finance ministry.

“Consensus expectations are catching up, but there remains a fair amount of scepticism on Italy’s performance going forwards.”

In the first six months of 2017, growth was 1.2 per cent, according to ISTAT.

Italy still lagging despite best growth in 6 years

AFP, ROME: Italy posted yesterday its best annual economic growth figures since 2011 with its gross domestic product outdoing official forecasts to grow 1.5 per cent on an annual basis. Improved domestic demand for industrial products and in the service sector drove the improvement in the second quarter, national statistics body ISTAT said. Analysts interpreted the pick-up as reflecting an upturn in business confidence that has been helped by receding concerns over the stability of the countrys banking system. But they warned that Europes fourth biggest economy was still lagging behind its partners in the eurozone as it battles to repair the damage done by a lost decade of economic stagnation or recession. The second quarter performance makes it almost certain that GDP growth will exceed official projections of 1.1 per cent for the whole year, said Lorenzo Codogno, a former chief economist at the Italian finance ministry. Consensus expectations are catching up, but there remains a fair amount of scepticism on Italys performance going forwards. In the first six months of 2017, growth was 1.2 per cent, according to ISTAT.