Italy: GDP undershoots market expectations
May 13, 2011
In the first quarter, GDP grew a seasonally and working day adjusted 0.1% over the previous quarter, according to the first estimate released by the National Statistics Office (ISTAT) on 13 May. The reading matched the 0.1% expansion recorded in the previous quarter and undershot market expectations of a 0.3% rise. That said, the economy expanded 1.0% over the same quarter the previous year, which was down from the 1.5% rise recorded in the fourth quarter of 2010. The Ministry of Finance recently cut its growth forecast for this year and now sees the economy expanding 1.1%, down from a previously forecasted 1.3%. Next year, the government expects GDP to grow 1.3%, down from a previously forecasted 2.0%. The Bank of Italy (BoI), in contrast, is more pessimistic than the government and sees the economy expanding only 0.9% this year and 1.1% next year.
Author: Armando Ciccarelli, Head of Data Solutions