ROME, May 22 (Xinhua) -- Italy's gross domestic product (GDP) would grow by 1.4 percent in real terms in 2018, the National Institute of Statistics (ISTAT) stated on Tuesday.
In 2017, the third-largest economy in the euro-zone grew by 1.5 percent.
According to ISTAT, domestic demand would contribute 1.5 percentage points to the GDP this year, slightly counterbalanced by a 0.1 percentage point decrease in inventories. The final household consumption expenditure was expected to rise by 1.2 percent, thanks to a positive dynamic of wages.
Italian exports would rise by 4.3 percent, and imports by 4.7 percent, while investments were expected to reinforce their recovery up to a 4.0 percent increase in 2018, on condition that favorable financial credit conditions persist along the year, it said.
As for the labor market, the statistical agency forecast a moderate increasing path over the period. Employment was expected to rise by 0.8 percent, and the unemployment rate -- at 11.0 percent in March -- to drop slightly at 10.8 percent by the end of the year.
"These projections take into account the more favorable international framework, and the fiscal benefits to firms established by the (Italian government's) Industrial 4.0 Plan," ISTAT said in a report.
Italian economic think tank Prometeia shared ISTAT's moderately positive annual outlook.
"We do not see specific elements of uncertainty for 2018, unless unexpected drastic events undermine the expectations of households and firms, thus compromising their consumption and investment plans," Prometeia head of economic analysis and forecasting Stefania Tomasini told Xinhua.
In a report released last week, the think tank forecast a 1.3 percent rise in domestic consumption in 2018, lower than 1.4 percent registered in 2017, yet slightly more than the 1.2 percent predicted by ISTAT.
"We expect final household consumption expenditure to keep rising, although at a bit slower pace than in the last few years," Tomasini confirmed.
The recent introduction of the Income for Inclusion (REI) -- an anti-poverty measure passed in 2017 -- would contribute to support household incomes, according to the analyst.
Furthermore, the funds necessary to renew some collective contracts in the public sector have already been allocated in the 2018 budget plan.
"As such, although less strongly, we still expect the public sector to contribute to the formation of disposable income this year," Tomasini explained.
In its spring 2018 forecast, the European Union (EU) Commission said Italy's GDP would expand by 1.5 percent in real terms, while eurozone and EU-27 (except UK) would grow by 2.3 percent and 2.6 percent respectively.
