Is Italy’s economy really booming?

With three weeks to go before Italy’s election, the latest surveys suggest that the economy is performing very well. But the official data paint a less rosy picture. On balance, we think that GDP will rise by 1.5% this year and next, which would be a decent showing by Italian standards but slower than the euro-zone as a whole. And whichever parties form the next government, they seem unlikely to turn things around.