Italy Q1 GDP Growth Confirmed at 0.3%

The Italian economy advanced 0.3 percent on the quarter in the three months to March of 2016 compared to a 0.2 percent expansion in the previous period, matching first estimates. Growth was mainly driven by household consumption and an accumulation of inventories while a slump in exports contributed negatively.

It was the fifth consecutive quarter of expansion, as household consumption advanced 0.3 percent (from +0.3 percent in Q4), adding 0.2 percentage points (p.p.) to growth, and inventories contributed positively, adding 0.2 p.p. Government spending grew 0.2 percent (from +0.6 percent in Q4) and fixed investment expanded 0.2 percent (from +0.8 percent), making a zero contribution to quarterly growth. As a result, final national expenditure advanced 0.2 percent (+0.4 percent in Q4) and contributed with 0.2 p.p. Meanwhile, net external demand contributed negatively, subtracting 0.2 p.p., as exports dropped sharply by 1.5 percent (+1.2 percent in Q4) while imports fell at a slower 0.9 percent (+0.9 percent in Q4).

On the production side, services and industry sectors grew 0.2 (from +0.1 percent in Q4) and 0.9 percent (from +0.2 percent), respectively; while agriculture shrank 2.4 percent (from +2.1 percent in Q4). 

Year-on-year, the economy advanced 1 percent, easing from a 1.1 percent growth in the fourth quarter and matching preliminary estimates. Final consumption expenditure expanded by 1.4 percent and gross fixed capital formation by 1.8 percent. Meanwhile, exports shrank 0.4 percent while imports increased 1.2 percent.

The government expects this year's GDP growth to reach 1.2 percent, following 0.8 percent in 2015.

Italy Q1 GDP Growth Confirmed at 0.3%

Istat | Joana Ferreira |
5/31/2016 11:40:43 AM