Italy is “on the mend” and headed for acceleration, according to the country’s prime minister.
Matteo Renzi said that the eurozone’s third-largest economy was finally set to grow after years of stagnation.
"I say it without any problem and based on the figures: Italy has turned the corner. Full stop," Renzi told a daily newspaper.
"The economy is taking off and spending is growing. Something is changing."
The Italian government had predicted growth of 0.7% this year followed by 1.4% for 2016.
But recent data showed a significant increase of 2.7% in manufacturing in July 2015 over July 2014, as well as an increase in employment, prompting the government to say that the forecast could be increased.
Renzi vowed to keep the country’s budget deficit below the 3% maximum established by the EU.
But capitalising on its victory in gaining greater flexibility on those deficit rules, the prime minister said the country will have up to €17 billion to spend next year.
Taking advantage of the maximum margin of flexibility now allowed would give Italy a margin of manoeuvre equal to 1% of GDP, Renzi said.
"And this is not a gift that falls from the sky - it is the product of a battle we have fought and are winning in Europe."
The country’s budget is due to be published in October.
