The country's economy is expected to grow by 2.8 percent this year.
This is a slight improvement from the 2.6 percent growth estimate released in May, but still far below the 4.7 percent gross domestic product (GDP) growth projected before the start of the conflict between Russia and Ukraine in February.
ISTAT's latest growth estimate is slightly more optimistic than that released in mid-May by the European Commission, which projected GDP growth of 2.4 percent for this year.
ISTAT said in a report that the main driver of the country's economy this year and next will be the recovery of domestic demand for products, which it expected to increase by 3.2 percent this year.
ISTAT said that Italy's GDP would grow 1.9 percent in 2023, driven by a 1.9 percent increase in domestic consumption. The European Commission also predicted a 1.9 percent growth rate for the country next year.
Despite the slight uptick in growth estimates for 2022, ISTAT's estimates include a strong warning.
"The outlook for the coming months is characterized by high downside risks, such as further price increases, a decline in international trade and rising interest rates," ISTAT wrote. "Expectations of households and businesses could also deteriorate significantly."
Latest comments