Final data published by the National Institute of Statistics (ISTAT) showed that in the 3rd quarter, Italy's GDP growth slowed to 2.6% from 2.7% in the 2nd quarter. Economists also expected the economy to expand by 2.6%. ISTAT reported that the main catalyst for GDP growth was high consumer spending.
The data also showed that in annual terms, GDP grew by 3.9% compared to +17% in the 2nd quarter. The economy was expected to grow by 3.8%, which would be in line with the preliminary estimate.
According to the latest government forecasts presented in September, by the end of 2021, the economy will expand by 6.0%, but next year growth will slow down to 4.7%.
However, given the recent favorable data, politicians said that in 2021, GDP may increase more than current forecasts. But the rise in coronavirus cases poses a risk to these expectations. Last week, the Bank of Italy reported that GDP growth is likely to continue in the last quarter of 2021, but at a slower pace than in the previous two quarters.