Italy among global risk factors - IMF

Fund cuts Italian growth forecast for 2019 to 0.6%

(ANSA) - Davos, January 21 - The International Monetary Fund said Monday that Italy's financial situation was among the main risk factors for the global economy. "In Europe the Brexit cliffhanger continues, and the costly spillovers between sovereign and financial risk in Italy remain a threat," the IMF said in an update of its World Economic Outlook. The Fund added that it revised down its GDP growth forecast for Italy for 2019 to 0.6%, down from the 1% it predicted in October. It kept its forecast of 0.9% growth for 2020. "We have revised downwards our forecasts for advanced economies slightly, mainly due to downward revisions for the euro area," the IMF said.
    "Within the euro area the significant revisions are for Germany, where production difficulties in the auto sector and lower external demand will weigh on growth in 2019, and for Italy where sovereign and financial risks and the connections between them are adding headwinds to growth".
   

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