ROME Black Donnel Pumphrey Jersey , June 6 (Xinhua) -- Italy's economy is showing new signs of life with a GDP growth of 0.4 percent in the first quarter, but experts warned national debt still could be a major hurdle for the economic revival.
The country's National Statistics Institute, ISTAT, released the 0.4 percent growth earlier this month. The growth would be modest in many countries Black Rasul Douglas Jersey , but for Italy it counts as good news. It matches the highest quarterly growth figures for any quarter over the last five years and it resulted in an upward adjustment for full-year estimated to 1.2 percent from 1.1 percent previously.
If that happens, it'll be the strongest annual growth rate since topping 2 percent in 2011.
ISTAT said the growth figures were pushed by domestic demand for products, another sign of economic health. Unemployment rates are inching downward -- the latest figure was 11.1 percent, the best since 2012 -- with consumer confidence trending higher.
"The economic growth figures are a good Black Sidney Jones Jersey , good sign," Stefania Tomasini, an economist who monitors the Italian economy for the Prometeia consultancy, told Xinhua.
"Obviously Black Derek Barnett Jersey , there are still structural problems that have to be addressed, and the weight of the national debt is too high. But these growth signals are good news in and of themselves, and they will mean even more if the more robust growth continues."
Prometeia will not revisit its economic growth estimates for Italy until July, but Tomasini said she would "not be surprised" if the year-end growth rate is 1.3 or even 1.4 percent.
Surpassing the 1.1-percent growth forecast for the year is important because that is the figure the government is using this year for estimating tax revenue and expenditures. Every tick above that level makes it easier for the government to pay down debt and meet other obligations.
Debt is key. Italy's debt is now worth 2.2 trillion euros (2.5 trillion U.S. dollars) Black Dallas Goedert Jersey , or 132.6 percent of the country's gross domestic product. That is the third highest level of debt in GDP terms, and the cost of servicing that debt is the largest signal expenditure for the Italian state.
"Sustained economic growth is almost impossible when a country's national debt is more than 120 or 130 percent of GDP," Javier Noriega, chief economist with Hildebrandt and Ferrar Black Jay Ajayi Jersey , said in an interview.
But Italy's debt to GDP ratio could be ready to start trending downward. Stronger economic growth changes the GDP portion of the calculations, and more economic activity results in more tax revenue, which can change the other part.
Minister of Finance Pier Carlo Padoan told the Euroepan Union last week Italy's budget deficit would drop by 0.3 percent by the end of next year, and the Bank of Italy said it was possible the government's debt could drop below 100 percent of GDP within 10 years. The last time Italy's national debt was smaller than its GDP was in the 1980s.
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