Italian economy grows stronger than expected in the 3rd quarter

The National Statistics Office said that the gross domestic product in the third largest economy in the euro area rose by 0.5% in the third quarter of this year, and on an annual basis the Italian economy grew by 2.6% in the third quarter.

Assuming that GDP was flat on a quarterly basis in the fourth quarter, the full-year growth would be 3.9% this year, and the third quarter saw an increase in domestic demand while trade flows were a drag on growth, the statistics office said.

The economy is expected to grow for the full year by 3.3% this year, slowing sharply to just 0.6% in 2023, after unexpected growth in the third quarter where it appears likely to exceed the expectations of 2022.