Italy’s economy is set to rally more than forecast in 2021, broadly hitting the government’s 6% target for growth, according to the central bank’s chief on Monday.

Back in July, the Bank of Italy forecast the economy – the third largest in the eurozone – would grow by 5.1% this year, following the 8.9% contraction last year due to the coronavirus crisis, Reuters reports.

"The recovery is certainly stronger than expected and we think that 6% is roughly a ballpark figure (for 2021 Italian growth)," Bank of Italy Governor Ignazio Visco told the 'Made in Italy' conference organised by Il Sole 24 Ore, the Financial Times and Skytg24.

The Governor went on to add that the growth outlook was dependent on the Covid vaccine rollout as well as the impact of the variants of the virus.

In addition, Visco, a member of the European Central Bank's (ECB) governing council, said the ECB would make sure financial conditions stay positive.

"I don't expect any surprises there," he stated, going on to add that price pressures as a result of supply issues, such as that of semi-conductors and raw materials, would relax as economic activity eases back to normal.

Last week Prime Minister Mario Draghi said Covid vaccinations are “an ingredient that favoured this recovery of the Italian economy.

“The fact that you can work with tranquility at a business, that you can travel around, that children and students have returned to school … this according to me is the fundamental ingredient for growth, which we must protect,’’ he said.

The PM continued: “There is trust in Italy, among Italians and from the rest of the world toward Italy. That is the other important news.” Any additional steps taken by the government must “contribute to a growth that is equitable and sustainable and durable,” he said.