Italy expects to see "sustained" economic growth during pandemic recovery: ISTAT

ROME, June 4 (Xinhua) -- Italy's economy is poised to start a period of "sustained growth," according to new modeling released on Friday by the country's National Institute of Statistics (ISTAT).

The institute predicted that the country's economy would grow 4.7 percent this year and 4.4 percent in 2022.

If that proves accurate, it means the economy will have by next year more than recovered from the 8.9 percent contraction recorded in 2020 amid the lockdowns and economic problems sparked by the coronavirus pandemic.

The modeling 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 percent growth compared to the end of 2020.

According to ISTAT, economic growth through the end of 2022 will be driven by a 10.9 percent increase in investments this year and a further 8.7 percent next year, combined with a 4.6 percent rise in domestic demand in 2021 and a 4.5 percent increase in 2022.

Household spending is expected to increase by 3.6 percent this year and 4.7 percent next year.

Foreign demand, meanwhile, is projected to have a modest impact on Italy's economy, increasing by 0.1 percent this year but contracting by 0.1 percent next year.

The institute also predicted a "gradual normalization" of the labor market, with the unemployment rate peaking this year at 9.8 percent and improving to 9.6 percent in 2022 -- about the same as it was before the pandemic.

[ Editor: WPY ]