Bank of Italy unveils optimistic economic projections

Italy's GDP will expand by 0.5% this year and will accelerate during the following three years, at an average annual rate of around 1%, driven by a recovery in consumption and exports, the country's central bank said, CE Report quotes ANSA.
The Bank of Italy specified that its estimates were adjusted for the number of days worked, contrary to estimates elaborated by the economy ministry in the Structural Budget Plan (PSB) in September.
In order to compare the central bank's estimates to those of the economy ministry, it is necessary consider projections not adjusted for the number of days worked per year, or +0.7% compared to +1.0 outlined by the PSB.
The Bank of Italy also said inflation is projected to remain low, at 1.1% on average this year, 1.5% in the next two years, and 2.0% in 2027.
"The fading of the strong negative contribution of the energy component and, in 2027, the temporary effects of the entry into force of the EU Emission Trading System 2 (ETS2) legislation will likely be the main drivers of the rise in inflation", the central bank said in a note.
Core inflation "is projected to be just over 2% on average this year and to decline to just over 1.5% in the next three years", the central bank said.