Italian economy extends gain, boosting optimism on recovery

Bloomberg

Italy’s economic recovery extended for a tenth straight quarter, boosting optimism that growth can become sustainable this year amid a rise in industrial production.
Gross domestic product expanded 0.4 percent in the three months through June, the same as in the first quarter, Rome-based statistics agency Istat said in a preliminary report on Wednesday. That matched the median of 26 analysts’ estimates in a Bloomberg survey.
The GDP performance “is the result of an increase in the added value
of manufacturing and services,” said Istat which will provide a detailed breakdown of the GDP performance on September 1.
Should the economy keep rising at the same pace in the rest of 2017, Italy’s GDP would grow an annual, workday-adjusted 1.5 percent this year, Istat also said.
Although still lagging behind euro-area peers, the Italian economic recovery looked more convincing this year with industrial output expanding a seasonally adjusted 1.1 percent in the second quarter and a rise in exports of Italian goods over the same period despite the stronger euro.
In the three month through June, the euro region’s economy expanded 0.6 percent from the previous quarter and was supported by continued growth in Germany, the European Union statistics office Eurostat in Luxembourg said in a separate report on Wednesday. Italy’s recovery “is being confirmed by this report though not at a pace that can convincingly relaunch investments and absorb joblessness,” said Andrea Goldstein, chief economist at Bologna-based researcher Nomisma. “The gap between Italy and its main commercial and financial partners widens almost relentlessly each quarter.”
The euro-region’s third-largest economy will expand 1.2 percent this year and 1 percent in both 2018 and 2019, according to an earlier survey conducted this month by Bloomberg.