ITALIAN 1986 GDP UP 2.7 PCT, UNEMPLOYMENT RISES Extracts from a report by Italy's Budget Ministry on the country's economic development in 1986 showed gross domestic product (GDP) 2.7 pct higher in real terms than in 1985 but a rise in unemployment. GDP calculated at 1980 prices rose to 434,682 billion lire last year from 423,064 billion in 1985. On a current prices basis, GDP was up 11 pct, totalling 894,362 billion lire in 1986 against 805,754 billion in 1985. But growth was insufficient to prevent a rise in unemployment to 11.1 pct last year from 10.3 pct in 1985, the ministry said. The report said falling oil prices and the depreciation of the dollar during 1986 had favoured oil-importing countries such as Italy. These factors helped Italy cut inflation to an average 6.3 pct in 1986, down from 9.3 pct in 1985. They also helped a major improvement in the trade balance. On the basis of data recently recalculated by the national statistics institute Istat, Italy had a trade deficit in 1986 of 3,722 billion lire, the report said. This slightly revises a previous deficit figure of 3,717 billion issued by Istat and compares with a negative balance of 23,085 billion for 1985.