Driven by exports, Italy's economy shows signs of recovery

Supported by an upswing in exports, Italy's economy has showed signs of recovery in 2021, the country's National Institute of Statistics (ISTAT) said on Tuesday, reported Xinhua.

"Manufacturing, driven by exports, and constructions are recovering, " the agency said in its monthly report for March 2021.

The report said that Italy's industrial production grew by 0.2 percent in February month-on-month, and by 0.6 percent on average between December 2020 and February 2021 compared to the previous quarter.

"Production levels of intermediate goods and durable consumer goods are now higher than those registered in February 2020 -- by 5.9 percent and 2.1 percent, respectively -- while energy (down 6.2 percent), capital goods (down 4.3), and non-durable ones (down 3.4) remain lower," it said.

Italy's exports moved in line with the recovery of world trade, driving industrial growth.

"Sales abroad -- which have significantly improved in the second half of last year -- have recorded a new 2.3 percent rise in January (on a monthly basis), while imports showed a more contained dynamic (1.2 percent), ISTAT said."

More specifically, exports showed a higher increase in flows destined to European Union (EU) countries (four percent) in January than in those to non-EU markets (0.4 percent).

The report confirmed that Italy's gross domestic product (GDP) dropped 1.9 percent in the fourth quarter of 2020 against the previous three months (less than two percent estimated in January).

Business confidence remained favorable, especially in terms of companies' expectations for the next few months.

"Business climate improved in March (against the previous month), while consumer confidence remained characterized by high uncertainty," ISTAT wrote.

The Italian economy, which is the third largest in the eurozone, shrank by 8.9 percent in 2020, according to the statistical office's preliminary estimate.

The figure was lower than the forecasts provided by the government (down nine percent) and the Central Bank of Italy (down 9.2 percent).

Nonetheless, the impact of coronavirus has been hard overall, with some 45 percent of the country's small-sized firms now being "at a structural risk" because of the pandemic, ISTAT said earlier this month.