Sharjah24 – AFP: Italy's economy grew by an "exceptional" 6.6 percent in 2021, exceeding government forecasts, while public debt fell more than expected, national data showed Tuesday.
"In 2021, the Italian economy experienced exceptional growth due to the strong recovery in production, after a 2020 marked by the effects of the health emergency," the National Statistics Institute (Istat) said.
Italy became the first European country to be hit by coronavirus in early 2020 and imposed a lockdown that sparked the worst recession since World War II.
Istat revised the figures downward slightly, suggesting gross domestic product (GDP) in the eurozone's third largest economy plunged 9.0 percent in 2020.
But last year, the economy bounced back with growth that beat the government's 6.0 percent forecast, due to domestic demand, with household consumption up 5.2 percent and investment 17 percent.
Exports rose by 13.3 percent -- just behind imports, which were up by 14.5 percent.
Italy posted a deficit of 7.2 percent of GDP in 2021 -- down from 9.6 percent in 2020, due to a growth in revenues and reduced spending, Istat said.
The debt-to-GDP ratio dropped more than expected to 150.4 percent of GDP in 2021, compared with 155.3 percent in 2020 -- though it remained well above the eurozone average.
Italy's central bank revised its growth forecast for this year down in January, during a surge in coronavirus infections. It said it expected GDP to rise by 3.8 percent, rather than the previously forecast 4.0 percent.
Rome was more upbeat, however, forecasting a rise of "over 4.0 percent" for growth in 2022.
The central bank estimates GDP should return to its pre-pandemic level "around mid-2022".
GDP is expected to rise 2.5 percent in 2023 and 1.7 percent in 2024.
Italy is banking on almost 200 billion euros in EU post-Covid recovery funds between 2021 and 2026.
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