MILAN, Sept 9: The Italian economy grew by 0.3 per cent in the second quarter from output in the first quarter when growth was 0.1 per cent, the statistics institute Istat said in a final estimate on Friday.

The figure confirmed an earlier estimate.

On a 12-month basis, the economy showed growth of 0.8 per cent in the second quarter, Istat also confirmed.

External demand was the main driver of growth, and exports rose by 0.9 per cent, Istat said. Imports fell by 2.3 per cent.

Consumption and investment increased by 0.2 per cent.

Italy has been handicapped by weak growth for several years, and is now in the throes of pushing through crash measures and cutbacks to correct the budget because of market pressure over high national debt.

In August the Italian central bank warned of the negative effects on growth of these measures, and called for structural reforms to strengthen the potential for growth and avoid what it termed stagnation. —AFP