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Postby yellowbaby520 » Sat Mar 10, 2018 6:54 am
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by Alessandra Cardone

ROME, Sept. 30 (Xinhua) -- Supporting increase in domestic demand is a crucial factor in order to put Italy's economy back on track, after the country posted a zero growth in the second quarter of 2016, according to an analyst of Italian economic think-tank Prometeia.

Italy's growth path was affected by an increasingly uncertain global context, as well as many other countries, said Stefania Tomasini, Prometeia's head of economic analysis and forecasting.

Yet, "Italy's domestic demand has further weakened from the 2016 second quarter on, while net exports have continued to grow," Tomasini told Xinhua in a recent interview.

"What it most concerning is that, behind such drop, there seems to be a sharp slowdown in the purchases of durable goods by households and firms, which had been a key driver of recovery since end of 2014 and beginning of 2015," said the expert.

"Such slowdown was expected, but it has not been replaced by an increase in non-durable goods consumption of families and businesses ... And that is exactly the worrying factor," she pointed out.

More precisely, the domestic demand fell to 0.1 percent in the second quarter of 2016 from 0.4 percent registered in the first quarter. Fixed investments dropped more, falling from a 2.1 percent growth rate in Q1 to -0.6 percent in Q2.

"This decline was particularly sharp and unexpected,"she said.

"Exports have accelerated in the corresponding period, which means the drop does not depend on foreign demand, but on domestic demand," Tomasini said.

In a recent study, Prometeia said Italy's recovery is confirmed as being one of the weakest, with gross domestic product (GDP) estimates reduced from 0.8 percent to 0.7 percent in 2016, and from 0.9 percent to 0.8 percent in 2017.

The stagnation registered in the second quarter of this year was particularly concerning due to its origin: that is "the domestic demand has breached expectations," the think-tank said in its quarterly study.

Overall, Prometeia forecast Italian domestic consumption to grow by 1 percent in 2016.

According to the National Institute of Statistics (ISTAT), Italy's GDP came to a halt in the second quarter of 2016 compared to a 0.3 percent growth in the previous period. It grew by 0.8 percent compared to the same quarter of 2015, above a preliminary. Cheap Jerseys Cheap Jerseys China Wholesale Cheap Jerseys Wholesale Cheap Jerseys China Free Shipping Cheap Authentic NFL Jerseys Cheap Wholesale NFL Jerseys Cheap Wholesale NFL Jerseys Cheap Nike NFL Jerseys Wholesale Jerseys Wholesale Jerseys China
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