ISTAT revises upwards 2017 GDP to 1.0%

(ANSA) - Rome, May 22 - ISTAT on Monday revised upwards its 2017 growth forecast from 0.9% to 1.0%, saying that "a more sustained dynamic in world trade is foreseen that should boost exports".
    Italy's GDP is recovering but there is a gap with the rest of the EU, the national statistics agency said in its spring forecasts. It said Italian GDP rose 1.9% in the first quarter of 2017 while eurozone GDP rose 3.5%.
    The 1.0% estimate is slightly higher than that of the European Commission, 0.9%, and lower than that of the Italian government, 1.1%.
    ISTAT explained that GDP growth in 2017 will be "boosted by the continuation of the expansive phase of domestic demand (1.1 percentage points)".
    Therefore, it said, "household spending will supply a significant contribution to growth, albeit at a less accentuated intensity compared with the two previous years." And, it added, "investments, too, will contribute in a significant way, to the improvement in GDP with growth rates in line with those of the previous year".
    Household spending was hindered by price rises in 2017 and only rose by 1%, ISTAT said.
    The agency also said that there were risks because of tensions on the financial markets.
    Unemployment in 2017 was 11.5%, a "moderate improvement," ISTAT said.
    It also said that a "surge" in investments was continuing, with a 3% rise expected this year.