Italy's economic growth will be more robust than expected

Italy's economic growth will be more robust than expected

ROME Reuters - Italy's business lobby Confindustria told on Saturday the country's growth would be more robust than expected, mainly due to a more contained impact of the COVID -19 Delta variant and stronger than expected economic indicators.

The association's research unit CSC forecasts gross domestic product GDP to rise 6.1% in the coming years and 4.1% the following year, going above pre-pandemic levels in the first half of 2022.

In April the Research Unit remarked that Italy's GDP would increase in 2021 by 4.1%.

Its forecasts for this year are already just above the 6% anticipated by the national unity government led by Mario Draghi.

Last year, the unemployment rate dropped by 8.9%, the steepest recession in Italy post war history. The firm pick-up now in place is seen resulting in lower than expected public deficit and debt ratios this year.

The CSC Report cautioned that, starting from the last quarter of this year, GDP growth would have a more moderate profile It said that its estimates took into account Italy's multi-billion euro recovery plan, partly funded by the European Union.

It added that, despite the positive perspectives the forecasts had downside risks that were linked to new COVID-19 restrictions, the lack of raw materials that could cause bogdown production and more structural inflation.

Confindustria President Carlo Bonomi said that recovery was well underway but that it was important to keep the guard down Italy must go back to growing at a yearly pace of at least 1.5 - 2%, an achievable goal, equal to annual growth registered between 1997 and 2007, he said.