Italy's business association raises 2018 national growth forecast to 1.5 pct

ROME, Dec. 13 (Xinhua) -- Italy's gross domestic product (GDP) was expected to grow by 1.5 percent in 2018, the country's major business association Confindustria said in a report on Wednesday.

The group revised its forecast for next year from a previous 1.3 percent, considering positive economic trends at the international level.

"Global growth continues at the highest speed since 2010, and has accelerated in the final phase of 2017," Confindustria said.

Economic expansion was expected to keep its pace in the next two years, particularly due to the global investment cycle that started at the end of 2016, according to the report. "This was the missing factor in order to exit the crisis," it stated.

"Once triggered, it would not stop in the short term, and it is likely to feed itself, generating income and demand that would justify fresh investments."

The growth of the Italian economy was also confirmed at 1.5 percent this year, and forecast at some 1.2 percent in 2019, in light of "the latest data, the measures provided by the budget law, and the improving international conditions," Confindustria said.

However, the Italian employers' association warned political instability would be a major risk for this growth perspective, as Italy prepares to go to general elections by next spring.

"It (the vote) would put the country before a crossroad: either continue on the path of reforms, or do nothing, which in relative terms would mean going backwards."

Also on Wednesday, the National Institute of Statistics (ISTAT) said Italy's industrial production rose by 0.5 percent in October compared to the previous month, and by 3.1 percent on a yearly basis. Enditem