Italy sees 2023 GDP growth up to 1.2%, above target, PM Meloni says

MILAN, July 3 (Reuters) – Italy’s economy could grow by 1.2% this year, Prime Minister Giorgia Meloni said on Monday, a figure above the official target set at 1% in April.

“Italy’s resilience means that our economy is growing beyond expectations, with a GDP annual forecast of 1.2% in 2023, a growth level higher than the European average,” Meloni said during an event in Milan.

Italy’s manufacturing sector contracted in June at the steepest rate in over three years, a survey showed on Monday, signalling a recession ahead unless buoyant services can prop up the euro zone’s third largest economy.

However, the Treasury believes that a positive trend in the service sector will be enough to offset the slowdown in manufacturing in the next few months, officials have said.

In its Economic and Financial Document (DEF) published in April, the Treasury forecast gross domestic product (GDP) to grow by 1% this year, up from a 0.6% projection last November.

The government set a GDP growth target of 1.5% next year, down from the previous 1.9%.