Italy Q4 GDP Growth Rate Confirmed At 0.2%

Italy's gross domestic product advanced 0.2 percent on quarter in the three months to December of 2016 compared to a 0.3 percent expansion in the previous period and matching the preliminary estimate. It was the weakest growth rate in one year, as domestic demand continued to boost output while inventories fell.
Istat | Joana Ferreira | 3/3/2017 9:46:43 AM
From the expenditure side, the positive contribution to GDP came from final domestic demand (0.4 percentage points), namely fixed investment (0.2 percentage points) and government spending (0.1 percentage points). In contrast, changes in inventories subtracted 0.2 percentage points from growth, while consumer spending and net exports showed no contribution.

Fixed investment grew by 1.3 percent (from 1.5 percent in Q3), boosted by spending on transport equipment (13.6 percent from 10.7 percent in Q3), construction (0.5 percent from 0.7 percent in Q3) and machinery and equipment (0.4 percent from 1.1 percent in Q3). Also government spending rebounded 0.6 percent after falling by 0.2 percent in the previous period. Meanwhile, household expenditure edged up 0.1 percent (from 0.2 percent in Q3); exports increased by 1.9 percent (from 0.3 percent in Q3) and imports by 2.2 percent (from 1 percent in Q3).

From the production side, industrial output grew 0.8 percent (the same as in Q3), as manufacturing advanced 0.9 percent (1 percent in Q3) and construction rebounded 0.6 percent (after showing no growth in Q3). Service sector stagnated (from 0.1 percent in Q3); and agriculture contracted 3.7 percent, the fourth period of decline (from -1.1 percent in Q3).

Compared with the same period of 2015, the economy expanded 1 percent, the same as in the previous period and below a preliminary reading of 1.1 percent growth.

In 2016, the economy advanced also 1 percent after growing by 0.7 percent in 2015 and by 0.2 percent in 2014. The government forecasts 1 percent economic growth in 2017.

Italy Q4 GDP Growth Rate Confirmed At 0.2%