The Italian economy could grow by 1.2% in 2023, according to Prime Minister Giorgia Meloni on Monday.

This figure exceeds the official growth target set in April of 1%. 

"Italy's resilience means that our economy is growing beyond expectations, with a GDP annual forecast of 1.2% in 2023, a growth level higher than the European average," the PM said during an event in Milan.

Within Italy's Economic and Financial Document (DEF) published in April, the Treasury forecasted GDP to grow by 1% this year, a rise from a 0.6% forecast in November last year, Reuters news agency reports. 

The government established a GDP growth target of 1.5% next year, a fall from the prior forecast of 1.9%. 

In addition, Italy's manufacturing sector contracted last month at the steepest rate in more than three years, the results of a survey revealed on Monday. 

The HCOB Global Purchasing Managers' Index (PMI) for the country's manufacturing stood at 43.8, a fall from 45.9 in May and far below the 50-level separating growth from contraction for the third straight month.

"The recession in Italian industry ... seems to be deepening," stated HCOB economist Tariq Kamal Chaudhry.

The reading missed the average forecast of 45.4 in a Reuters poll of analysts and was the lowest since April 2020, when the industry came to a standstill during the pandemic.

Furthermore, the manufacturing output sub-index plummeted to 42.7 from May's 46.4, whilst the new orders indicator fell to 40.1 from 44.3.

There have been mixed signals within the economy over the past few months, with the industry and manufacturing sectors struggling, yet services and employment have grown due to a rise in tourist arrivals.

The country's PMI, due to be published on Wednesday, is forecast to show a slowdown in the sector in June, yet still with a degree of growth, according to the Reuters survey.