The newly outlined economic
blueprint of Italian Premier Matteo Renzi was given a vote of
approval by the International Monetary Fund (IMF) on Wednesday.
The agency praised Renzi for moving in the direction it
said the IMF recommended, including reforms to spending plans
and reducing labour costs, said the IMF's Sanjeev Gupta.
Renzi's blueprint, called the Economic and Financial
Document (DEF), was approved by cabinet Tuesday, and outlines
the government's plans to boost Italy's weak recovery, as well
as updating its macroeconomic forecasts.
Renzi's plans include as much as 10 billion euros in tax
cuts for lower-income earners while redirecting spending to
higher priority budget items.
The IMF on Wednesday also forecast the ratio of Italy's
deficit to gross domestic product (GDP) will average 2.7% in
2014, below 2013's 3% ratio, and said the ratio will slide to
1.8% in 2015.
As well, it said Italy's debt-to-GDP ratio will rise this
year to 134.5% from last year's 132.5%.
The ratio will then drop in 2015 to 133.1% and continue to
fall to as low as 121.7% by 2019, said the agency.
On Tuesday, the IMF released its World Economic Outlook
that said growth in Italy will average about 0.6% in 2014,
rising to 1.1% in 2015.
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