Production is growing in Italy, and according to ISTAT figures, manufacturing industry is expanding fast, with an increase of 60%.
The economic recovery will gain speed thanks to a positive “contagion effect” between various sectors. ISTAT presents a rosy view of prospects over the coming months. “The Italian economy is accelerating due to widespread growth in production and an increase in employment”, writes the national institute of statistics, which just last week confirmed that GDP is at its highest level in six years.
And the growth will not stop there, since the forecasted figures – indicators for the immediate future – indicate a strengthening in growth prospects. Meanwhile, tax revenue is up, with an increase of 1.6% in the first half of the year, according to the Ministry of Economy and Finance, pointing to the rise in VAT revenue (up 4.4%).
THE CONTEXT. The institute of statistics is talking about a contagion effect between individual sectors. “The recovery will be widespread and concerted”
Overall, then, estimated growth appears to have been exceeded, and now it’s just a case of the most eagerly-awaited indicator of all, the government’s own. The updated Document of Economy and Finance (DEF) is shortly to be published, and the bar of annual growth – still stuck at 1.1% – looks set to rise.
Deputy minister for the Economy Pier Paolo Baretta assures us: “In the next ten days or so, by 20th September at the latest, the task of finalising the plan for growth will be completed”. As yet he has made no comment on the figures.
According to ISTAT, however, if the pace of the past three months is maintained (+0.4%), a GDP of 1.5% is within reach. But where is the recovery coming from? On this occasion there is not one single factor; for ISTAT it’s a question of a “concerted” growth spread throughout production sectors, as explained in the institute’s most recent statement. To the extent that 60% of manufacturing firms are in expansion in the reference sectors, while the service sector is up by more than 50%.
ISTAT: “The Italian economy is accelerating”. Growth exceeds expectations
On the other hand, the latest figures show that in investment terms it’s all systems go: investment is up once again after a difficult start to the year (+0.7%) , and so is self-employment.
Source: Bresciaoggi 06/09/2017