Industrial production in Italy rose in August

Industrial production in Italy rose in August for the second consecutive month, supporting expectations for a revival of economic recovery. The industrial production grows by 1.7% mom in August, and with accelerated pace, because in July the increase was 0.7%. On year-on-year base the industry report an increase of 4.1%. Manufacture of basic metals grows by 4.8% mom in August, while the machine equipment by 5.9%.

The Prime Minister of Italy Matteo Renzi intends to revive economic activity since the second quarter growth remained unchanged. The draft budget for 2017 includes a reduction in corporate tax from 27.5% to 24%. On December 4, will hold a referendum on the planned constitutional reform and if voters reject it, it would be a big blow to the government.

According to the deputy central bank governor Fabio Panetta, the weak recovery in Italy largely due to low levels of foreign investment.

The International Monetary Fund (IMF) lowered last week its forecast for growth in the Italian economy and in 2016 expected expansion in gross domestic product (GDP) amounted to 0.8%, while next year for 0.9%.

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