PHOTO
The Italian economy will grow by 0.8% this year and next, the Bank of Italy said on Thursday, leaving unchanged its previous estimate for 2024 and marginally revising down the outlook for 2025.
The bank's previous forecasts, made in April, envisaged gross domestic product in the euro zone's third largest economy expanding by 0.8% this year and by 0.9% in 2025.
The forecasts are adjusted for inflation but not for the number of days worked each year, in line with the methodology used by the European Union and other bodies for international comparisons.
If adjusted for the number of days worked, the Bank of Italy said in its statement that growth this year is seen at 0.6%, accelerating to 0.9% next year.
Rome's average EU-harmonised inflation rate should come in this year at 1.1%, the central bank said, below the 1.3% foreseen in April.
The Rome-based central bank saw the inflation rate rising to 1.5% in 2025, lower than its previous estimate of 1.7%.
The bank said its estimates, which were made as part of the European Central Bank's forecasting exercise for the euro zone as a whole, were based on information available up to May 22.
Italian GDP - not adjusted for days worked - rose 0.3% in the first quarter from the previous three months, data showed at the end of May, following marginal 0.1% growth in the fourth quarter of 2023.
Most analysts expect similar weak growth in the coming quarters, yielding full year expansion of between 0.7% and 1%, broadly in line with last year's 0.9% rate and the Bank of Italy's forecast.
The Italian government forecast growth of 1.0% this year and 1.2% in 2025.
(Reporting By Gavin Jones, editing by Alvise Armellini)