Italy's deficit-to-GDP ratio in Q2 touches lowest point since 2007

Italy's budget deficit to gross domestic product (GDP) ratio was 0.2 percent in the second quarter of 2016, improving by 0.7 percent compared to the same period in 2015, the National Institute of Statistics said on Monday.

It was the lowest point registered since the second quarter of 2007, according to the agency.

In the first half of 2016, overall, the budget deficit decreased to 2.3 percent of the GDP from 3 percent registered in the same period last year.

The gross disposable income of households in real terms grew by 1.1 percent in the second quarter with respect to the first quarter, and by 2.9 on an annual basis, ISTAT also stated.

The gross disposable income of households in real terms grew by 1.1 percent in the second quarter compared with the previous quarter, and by 2.9 on an annual basis, ISTAT also stated.

On the contrary, the families spending rate increased by just 0.1 percent in the second quarter compared to the first quarter, and by 1.3 percent on an annual basis.

The households' gross investment rate was at 5.9 percent, unchanged with respect to the previous quarter, and 0.1 percent higher than in the same quarter of 2015.

Finally, ISTAT said imports grew by 1.4 percent, and exports by 2.4 percent, on a quarterly basis.

Last week, the Italian government updated its economic forecast for this year and 2017. The Economy Ministry revised the Economic and Financial Document (DEF), cutting the growth outlook to 0.8 percent in 2016 from a previous forecast of 1.2 percent , and to 1.0 percent in 2017 from 1.4 percent.

It also increased the deficit forecast to 2.4 percent of GDP this year from a previous 2.3 percent, and to 2 percent in 2017 from 1.8 percent.

Source : XINHUA