Italy's GDP will rise by 0.8% this
year and by 0.6% in 2017, the CSC research centre of industrial
employers' confederation Confindustria said Friday after
revising down its forecasts following the Brexit.
In December it forecast growth of 1.4% in 2016 and 1.3% in
2017. "The effects of the Brexit will be more evident in 2017,"
CSC said.
Confindustria's research unit also said that a recession
could ensue if the government's package to overhaul Italy's
political machinery is rejected in a referendum this autumn.
"The failure (of the Constitutional reform referendum)
could interrupt the recovery and sent the Italian economy back
into recession," it said.
Premier Matteo Renzi has pledged to resign if the
package, which features the controversial transformation of the
Senate into a leaner assembly of local-government
representatives with limited powers, is rejected.
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