Italy revises down Q2 GDP growth, public deficit broadly stable

Italy’s public budget deficit narrowed slightly in the first half of this year to 2.4 percent of gross domestic product, compared with 2.6 percent in the same period of 2016, official statistics agency ISTAT said on Tuesday. In the second quarter, the deficit amounted to 0.5 percent of GDP, widening from 0.4 percent in Q2 2016. Italy has an official target of a 2017 deficit of 2.1 percent of GDP, down from 2.5 percent posted last year.

ISTAT also revised down Italy’s quarterly economic growth in the second quarter to 0.3 percent from 0.4 percent previously reported, but revised up the first quarter to 0.5 percent from 0.4 percent. On a year-on-year basis, second quarter growth was unchanged at 1.5 percent, while the first quarter was revised up to 1.3 percent from 1.2 percent.

Every year in October, ISTAT revises its estimates of gross domestic product for the previous four years. ISTAT gave the following quarterly public finance data. All data are expressed as a percent of gross domestic product. Public balance Revenues Spending Primary Balance* Q2 2017 -0.5 46.7 47.2 3.8 Q1 2017 -4.3 42.6r 47.0r -0.6 Q2 2016 -0.4 46.8r 47.2r 4.1r *Public balance net of debt servicing costs. r=revised
Source: Reuters (Reporting by Gavin Jones, [email protected] + 39 06 8522 4232)