FXStreet (Delhi) – Paolo Pizzoli, Research Analyst at ING notes that the revised Italian GDP data depicts a stronger growth clip than originally reported in 1H15.
Key Quotes
“According to Istat, Italian GDP expanded 0.3% QoQ (0.2% in the flash estimate) in 2Q15 from an upwards revised 0.4% in 1Q15. Acquired growth for 2015 stands now at 0.6%. The demand breakdown, not published in the preliminary release, shows that domestic demand drove the expansion, with inventory accumulation contributing 0.4% and private consumption another 0.3% to quarterly growth.”
“Looking forward, the revised Istat numbers justify some measured optimism about average GDP growth in 2015. Risks to our current 0.7% growth forecast lie now to the upside, but potential market dislocations could still cool the spirits through bouts of risk aversion.”
“In the meantime, the Italian government will have to be careful not to slow the reform process, which remains badly needed. The road to a balanced growth model is still a long one.”
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