Italian Economy Expands 0.1% in Q4


The Italian economy advanced 0.1 percent on quarter in the three months to December of 2015, easing from a 0.2 percent growth in the previous quarter and matching first estimates. Household consumption, fixed investment and net exports were the main drivers of growth while inventories held back the economy.

It was the fourth consecutive quarter of expansion, as household consumption advanced 0.3 percent (+0.5 percent in Q3), contributing with 0.2 percentage points (p.p.), and government spending grew 0.6 percent (+0.2 percent in Q3), contributing with 0.1 p.p.. As a result, final national expenditure advanced 0.3 percent (+0.4 percent in Q3) and contributed with 0.3 p.p. to growth. Fixed investment expanded 0.8 percent (0.2 percent in Q3) adding 0.1 p.p., due to a rise in spending on transport equipment (+8.7 percent) and construction (+0.9 percent), partially offset by a fall in spending on machinery and equipment and other products (-0.1 percent). Also, net external demand contributed positively, adding 0.1 p.p., as exports expanded by 1.3 percent (-1.3 percent in Q3) while imports rose at a slower 1 percent (-0.2 percent in Q3). In contrast, inventories contributed negatively, subtracting 0.4 p.p. to growth and following three consecutive periods of gains.

On the production side, services and industry sectors grew 0.1 percent each while agriculture shrank 0.1 percent. 

Year-on-year, the economy advanced 1 percent, following 0.8 percent growth in Q3 and matching preliminary estimates. It was the strongest growth since the second quarter of 2011, as final consumption expenditure expanded by 0.9 percent and gross fixed capital formation by 1.6 percent. Meanwhile, exports rose 2.6 percent while imports increased at a faster 5.4 percent. 

Italian Economy Expands 0.1% in Q4


Istat | Joana Ferreira | joana.ferreira@tradingeconomics.com
3/4/2016 9:41:34 AM