ROME: Italy's economy will grow by 1.1 percent this year, national statistics institute ISTAT forecast on Tuesday, cutting its previous estimate of 1.4 percent made in November due to a weaker outlook for world trade.
ISTAT's gross domestic product forecast is marginally below that of Prime Minister Matteo Renzi's government, which last month cut its projection to 1.2 percent from 1.6 percent.
It would mark a slight acceleration compared with the 0.8 percent growth posted in 2015, when the euro zone's third largest economy emerged from a three-year recession.
ISTAT said in its twice-yearly forecasting note that growth this year would be supported by domestic demand, with investments seen increasing 2.7 percent from the year before and consumer spending up 1.4 percent.
This will be partly offset by a drag on growth from trade flows, with imports rising more than exports.
ISTAT forecast that unemployment would continue to edge down marginally, averaging 11.3 percent over the whole of 2016, compared with 11.4 percent in March, the most recent data available, which was the lowest reading since 2012.
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