Istat cuts growth forecasts to 0.5% in 2024, 0.8% in 2025

(ANSA) - ROME, DEC 5 - Istat said Thursday that it has cut its GDP growth forecast for Italy to 0.5% this year and 0. 8% in 2025.
    This is a reduction of half a percentage point on the forecast the national statistics agency gave in June for this year's growth and by 0.3 of a point on the prediction for 2025.
    The forecasts are well below the government's, which see GDP rising 1% this year and 1.2% next.
    The agency said the government's 2025 budget law will have a positive impact on the economy over the 2025-27 period, boosting GDP by slightly less than two-tenths of a point in 2025 and 2026, and slightly more than two-tenths in 2027.
    "In 2024, GDP growth will be supported by net foreign demand (+0.7 percentage points), while domestic demand will contribute negatively (-0.2 p.p.)," Istat said.
    "In 2025, however, the growth of the Italian economy will be primarily driven by domestic demand (+0.8 p.p.)". (ANSA).