ROME, June 28 Reuters Italy39;s Treasury said the country39;s economy could grow this year by at least as much as Rome39;s official target of 3.1 set in April, despite the negative impact of surging energy prices.

Italy grew 0.1 in the first quarter from the previous three months, national statistics bureau ISTAT said last month, revising up a preliminary estimate of a 0.2 contraction.

This left Italy with socalled carryover growth of 2.6 this year, assuming gross domestic product was flat in the remaining three quarters, ISTAT said.

Announcing on Monday the bond issuance programme for the third quarter, the Treasury said it expected growth to accelerate in the second quarter, compared with the first three months.

This still makes it plausible to reach or exceed the 2022 growth target of 3.1, it said in its debt issuance report.

Prime Minister Mario Draghi39;s government in April revised down its 2022 economic growth forecast to 3.1 from a 4.7 projection made last September.

The government has budgeted since January more than 33 billion euros 34.90 billion to soften the impact of skyhigh electricity, gas and petrol costs.

1 0.9456 euros

Writing by Giuseppe Fonte Editing by Keith Weir

Source Reuters