Italy's GDP growth will be just
0.5% this year, the lowest in the EU, the International Monetary
Fund said Wednesday.
The IMF said it would be around 0.6-0.7% over the coming
years, again the lowest in the EU.
Italy will run a deficit of 2.4% this year and debt will stay
at 135% of GDP, the second highest in the eurozone after
Greece's, the IMF said.
The IMF urged the government to cut the labour tax wedge,
which at 48% is much higher than the EU average of 42%.
It said it could do so by widening the VAT base, adjusting
property rules and continuing the fight against tax evasion.
The IMF also called for more liberalisation to boost the
economy.
Italian banks are now more solid but efforts to consolidate
them must be continued, the IMF said.
The government has already legislated for a rise in the
labour tax wedge.
Democratic Party (PD) leader Nicola Zingaretti said Friday
that cuts to the labour-tax wedge approved by the cabinet late
on Thursday will benefit around 16 million workers in Italy.
The measures, which will help people on salaries of up to
40,000 euros a year, include an increase in an existing tax
bonus for low earners from 80 euros a month to 100.
"Finally things are starting to change," Zingaretti said via
Twitter.
"The salaries of 16 million Italians are increasing.
"We are moving forward, working for Italian families and
firms, for the growth of our country".
Italy's northeast is leading Italy's hoped-for return to
less-than-anaemic growth with GDP rising 1.4% there last year,
ISTAT said Tuesday.
Growth was 0.7% in the northwest, the stats agency said.
It was also 0.7% in central Italy.
In the poorer south growth was just 0.3%.
Average national growth last year was 0.8%, ISTAT said.
Per capita GDP "sees the northwest at the top of the
standings," ISTAT said.
This was more than 36,000 euros a head.
It was almost double that in the south, around 19,000 euros,
the stats agency said.
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