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Italy expects 2.2% GDP growth in the third quarter

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Italy economy is expected to grow by 2.2% in the third quarter compared to the previous one, thanks to industrial production and the recovery of the services sector, which was hit by the pandemic.

With industrial production rising and the service sector starting to recover from the pandemic, Italy’s economic growth is to hit 2.2% in the third quarter.

“The third quarter has been very good, with a very sustained increase in consumption. This year we have a very high growth,” said Daniele Franco in a hearing.

“However, it will probably not be possible to replicate the 6% rise in GDP (gross domestic product) expected this year, even though we aim for higher rates in 2023, 2024, 2025 and 2026 than in the past, he added.

He warned, however, that surging energy prices could hamper the recovery. “This is one of the most significant factors of uncertainty,”.”We need to monitor both on a national and European level.”.

Reduced charges on energy

The Italian government has suspended or reduced its gas and electricity taxes as a measure of mitigation.

The state reportedly expended €1.2 billion on these measures in Q3, and €3.5 billion will be released in the fourth.

According to the government’s calculations, electricity bills would have increased by 40% and gas bills by 30% in the last quarter of the year without the government’s intervention.

“Globally, the gas supply and demand are out of balance,” explained Franco, but the situation should be improved next winter.

Italy GDP grew by 2.7% in the second quarter compared to the previous quarter. The National Statistics Institute (Istat) will release the first official estimate of GDP for the third quarter on October 29.

For MetaNews.

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