Italy GDP up 0.9% in 2016 and 2017-EC

(ANSA) - Brussels, February 13 - The European Commission said Monday that Italy's GDP rose by 0.9% in 2016, higher than its forecast of 0.7%. It said in its winter forecasts that it expects the Italian economy to grow by 0.9% again this year and by 1.1% next, having previously forecast a GDP rise of 1% for 2018. It described Italy's growth as "stable by modest" as "structural weaknesses hamper a stronger recovery". Italy's economic outlook is threatened by "political uncertainly" related to the possibility of early elections and the "slow adjustment" of the country's troubled bank sector, the European Commission said. The Commission also said, however, that "a strong impulse may yet come from external demand". Unemployment in Italy "remains high" and the phasing out of incentives for new hires is expected to lead to a deceleration in employment growth,it added. The Commission revised up its forecast unemployment for 2016, from 11.5% to 11.7%, for 2017, from 11.4% to 11.6%, and for 2018, to 11.3% from 11.4%.