In 2017, GDP will grow by 1%, thanks to the positive contribution of rapidly expanding domestic demand. In fact, Istat modified the estimate of November 2016, which envisaged an increase of +0,9%, recalling however that since the beginning of 2015 Italy has recovered 1,9 points of GDP, while the rest of the Eurozone is rose by 3,5%.
The Institute specified that "the different intensity of Italian growth compared to that of the euro area is a feature of the current economic cycle".
The change in Istat's forecast is due to a "more sustained dynamics of world trade, which would favor exports by reducing the negative contribution of the net foreign component”.
In the "Prospects for the Italian economy in 2017", Istat explains in detail what are the factors of this strengthening growth: "the domestic demand excluding inventories would contribute positively to GDP growth by 1,1 percentage points, while the contribution of net foreign demand would be marginally negative (-0,1 percentage points) and the change in inventories zero”.
They also grow household consumption, up by 1% in real terms, but at a lower rate than in 2016. "The growth in consumption - underlines Istat - would continue to be fueled by labor market improvements, only partially limited by the expected rise in consumer prices”.
Istat highlights that a more marked recovery in capital accumulation – another component of GDP – linked to the improvement in business expectations would constitute an additional stimulus for economic activity.
