ROME — The head of Italy’s central bank said Monday the eurozone’s third-largest economy could grow 4% this year, after shedding 9% during the pandemic year of 2020.

In the Bank of Italy governor’s annual report on the economy, Ignazio Visco cited indications of industrial production regaining momentum and plans for fresh investments by companies alongside progress in the vaccination plans, which together could help accelerate the recovery.

He noted that Italian firms were in better shape going into the pandemic than the financial crisis more than a decade ago, and that significant European and government support measures were helping to spur the economy.

Italy is slated to be the largest single recipient of EU recovery funds, which Visco said “offers us the chance to improve how the public sector works, and to stimulate private enterprise and modernize the economy.”