ROME - The Italian economy will grow by around 3.2% this year, the Bank of Italy said on Friday, broadly in line with its previous forecast and the government's own projection, before slowing to post a 1.3% expansion in 2023.
In its quarterly economic bulletin the central bank said its forecast was based on the assumption that the war in Ukraine would continue throughout this year but without completely blocking Italian energy imports from Russia.
The bank estimated gross domestic product in the euro zone's third largest economy rose by 0.5% in the second quarter from the previous three months, bolstered by a rebound in consumer spending following the easing of coronavirus restrictions.
The first quarter saw only a marginal GDP increase of 0.1%.
Italian inflation will average 7.8% in 2022, the bank estimated, and then slow steadily in the following two years.
Prime Minister Mario Draghi's government has forecast a growth rate of 3.1% for 2022 thanks to a strong carryover from last year, before slowing to 2.4% in 2023.
(Reporting By Gavin Jones)