Italian economy has grown by 0.9%

Rome:  Italy’s Gross Domestic Product (GDP) increased by 0.3 per cent in the third quarter of 2016 compared to the previous quarter, the National Institute of Statistics (ISTAT) said on Tuesday. ISTAT’s preliminary estimate also showed the Italian economy has grown by 0.9 per cent between July and September 2016 in comparison with the Q3 of 2015, Xinhua news agency reported.

The GDP had remained flat in the second quarter of 2016, and had grown by 0.4 per cent in the first quarter. The positive figure was welcomed by Prime Minister Matteo Renzi’s cabinet, which boosted that the country’s return to growth, although slow, was due to the implementation of its reform agenda.

“With reforms, the GDP goes up. Without reforms, the spread goes up,” Renzi wrote on his social media account after the estimate was unveiled. The spread between Italian and German bonds is a key indicator of market confidence in the Italian government and economy, since German bonds are considered Europe’s safest.

The spread on the 10-year bond has recently risen, and that was seen as a likely sign of worry for the uncertain outcome of a constitutional reform referendum scheduled on December 4, on which Prime Minister Renzi has put his political future at stake. The GDP growth in the third quarter “is a synthesis of an increase in the added value of industry and services sectors, and of a decrease of agriculture”, ISTAT said in a statement.