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Economics

Italy Looking Less Gloomy With Good News on Growth and Banks

  • GDP rises at fastest pace since final quarter of 2010
  • Country could hold an early election later this year
Updated on

As Italy moves toward possible early elections, a surprise acceleration in economic growth and a preliminary deal on the rescue of the country’s third-biggest bank provided the government with some much-needed good news.

First-quarter expansion was revised up to the fastest in six years, according to a report on Thursday, with a boost from inventories and solid consumer spending. While investment and net trade proved a drag, and Italy is still lagging its European peers, the news lifted hopes for the health of the economy.