What's going on?

Italy�s government, led by Prime Minister Renzi, said that its economy is likely to grow more than expected in the coming years. As the PM said, �In 2015, we turned the corner, and in 2016 we have to accelerate.�

What does this mean?

After struggling to grow since the financial crisis in 2007, Italy�s economy is finally starting to achieve real growth. This is partly because of things like a lower Euro, which makes it easier to sell goods overseas - so, for example, it�s cheaper to make Ferraris but they still sell for the same amount of US dollars in America. The low price of oil has also helped, as Italy doesn�t produce its own oil but instead has to buy it from abroad � so it�s a cost to its economy.

Why should I care?

1. Italy�s recovery from the financial crisis has lagged behind most of its European peers. Even the countries that were hardest hit, like Spain and Ireland, are now seeing fairly strong growth. It seems as though Italy is starting to catch up.
2. A growing economy is usually good for the stock prices of companies that operate in Italy, like Generali and Finmeccanica.