Italy at a slow pace: quarterly GDP at +1%

Italy's gross domestic product grew by 1% in the first quarter compared to the same period last year. This is confirmed by the final data published today by Istat. The result on a quarterly basis was also in line with expectations: +0,1% compared to the last three months of 2010.
Domestic consumption rose by 0,2%, in line with expectations. Imports and exports increased, albeit slightly, by 0,7% and 1,4% respectively. The change in inventories subtracted 0,3 percentage points from GDP growth, while the contribution of net foreign demand was positive by 0,2 percentage points. "The overall picture is one of generalized weakness, especially in domestic demand which is only partially offset by the foreign channel," said analyst Giada Gianni of Citigroup.  
The agricultural sector is the one that has given the greatest satisfaction, growing by 2,3%. Contrary to industry and services which remain stable (+0,1%).
It's just a war of figures: Istat halves the latest government forecast for GDP in 2011, estimating an acquired growth of 0.5%, against 1,1% for the Treasury.
"Our estimate of GDP for 2011 is still 1,1% even if there is some downside risk after these data," said Chiara Corsa of Unicredit.