Istat today confirmed the strong acceleration of the Italian economy in the second quarter of 2021. GDP increased by 2.7% compared to the previous quarter and by 17.3% compared to the second quarter of 2020.
The detailed breakdown of demand shows that domestic demand was the main driver of growth, reflecting the effect of the reopening. “Unsurprisingly, private consumption was by far the main driver of growth, contributing 2.8% to quarterly growth, followed at a distance by gross fixed investment (contribution of 0.5%) and exports net (contribution of 0.3%). The reduction in stocks subtracted 0.8% from quarterly growth and public consumption by another 0.2% “, states Paolo Pizzoli, Senior Economist of Ing.
The detailed release of GDP therefore shows that it was a story of private consumption “which looks set to continue, at a more moderate pace, in 3Q21”, adds Pizzoli who now estimates an average GDP growth in 2021 at 5.7%. , assuming no nationwide lockdowns will be imposed for the rest of the year.