Economy Italy Can Grow Well Above 5 Percent This Year

Economy Italy Can Grow Well Above 5 Percent This Year

Italy’s economy could grow well above 5 percent this year. That’s what Italian government officials have said.

 

This would make growth stronger than the most recent forecasts from the European Commission, the Organization for Economic Co-operation and Development (OECD) and the Italian central bank.

According to the officials, this is due to the progress of the vaccination campaigns against the coronavirus and the stronger growth of the global economy. Last year, the Italian economy shrank by almost 9 percent due to the pandemic and lockdowns. To support companies, Rome allocated an amount of 190 billion euros. The southern European country will also receive more than 200 billion euros in aid from the European Union in the coming years.

The Italian government currently forecasts 4.5 percent growth for 2021, but Economy and Finance Minister Daniele Franco recently indicated that this figure is likely to be revised upwards. The Italian central bank recently released an update and is now counting on around 5 percent. The OECD forecasts growth in Italy of 4.5 percent and the European Commission a plus of 4.2 percent.

Spain, which has also been hit hard by the corona crisis with a contraction of almost 11 percent in 2020, could also recover more strongly this year than previously thought. Top woman Ana Botín of the large Spanish bank Banco Santander is counting on growth this year, exceeding 8 or 9 percent. The Spanish central bank has so far used an estimate of a plus of 6.2 percent.

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