The Italian economy will grow this year at a slower pace than previously estimated, the statistical office announced on Monday, pointing to weak foreign demand.
The estimate for this year’s growth of the Italian economy has been revised down from 1.1 to 0.8 percent, which ISTAT attributes to weak foreign demand. This aligns with the expectations of the Italian government.
The contribution of domestic demand to GDP growth is expected to be 1.2 percentage points, according to the statistical office.
In 2017, the economy is expected to grow by 0.9 percent in real terms, supported by an increase in domestic demand.
ISTAT also forecasts improvements in the labor market during the observed period. Thus, the number of employed in 2016 is expected to increase by 0.9 percent, and by an additional 0.6 percent in 2017. The unemployment rate is expected to slide to 11.5 percent this year, and to 11.3 percent in 2017.
