Insight Online News
Rome, June 5 : Italy’s economy is poised to start a period of “sustained growth”, according to the country’s National Institute of Statistics (ISTAT).
The institute on Friday predicted that the country’s economy would grow 4.7 per cent this year and 4.4 per cent in 2022, reports Xinhua news agency.
If that proves accurate, it means the economy will have by next year more than recovered from the 8.9 per cent contraction recorded in 2020 amid the lockdowns and economic problems sparked by the coronavirus pandemic.
The modelling for this year also points to stronger growth over the remainder of the year given that ISTAT’s data for the first quarter showed only 0.1 per cent growth compared to the end of 2020.
According to ISTAT, economic growth through the end of 2022 will be driven by a 10.9 per cent increase in investments this year and a further 8.7 per cent next year, combined with a 4.6 per cent rise in domestic demand in 2021 and a 4.5 per cent increase in 2022.
Household spending is expected to increase by 3.6 per cent this year and 4.7 per cent next year.
Foreign demand, meanwhile, is projected to have a modest impact on Italy’s economy, increasing by 0.1 per cent this year but contracting by 0.1 per cent next year.
The institute also predicted a “gradual normalisation” of the labour market, with the unemployment rate peaking this year at 9.8 per cent and improving to 9.6 per cent in 2022 — about the same as it was before the pandemic.
IANS / AGENCY