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IMF cuts Italy GDP forecasts (2)

IMF cuts Italy GDP forecasts (2)

Growth estimate for this year revised down 0.2 of a point

New York, 16 January 2017, 16:29

Redazione ANSA

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© ANSA/EPA

© ANSA/EPA
© ANSA/EPA

The International Monetary Fund (IMF) said Monday that it has cut its growth forecasts for Italy for 2017 and 2018. It expects Italy's GDP to rise 0.7% this year, down 0.2 of a percentage point with respect to its October estimate. It sees growth of 0.8% in 2018, down 0.3 of a point on the previous forecast. The IMF gave the figures as it updated its World Economic Outlook. It said the Italian economy grew by 0.9% in 2016. International Monetary Fund Chief Economist Maurice Obstfeld on Monday called on Italy to do more for its troubled bank sector. "More can be done," Obstfeld said. "There is space for action". Obstfeld said that an important reform to encourage consolidation and tackle the issue of non-performing loans has been approved and "now must be applied". Obstfeld also praised the structural reforms passed by the government of ex-premier Matteo Renzi as "very important".
    He also said that much remains to be done in Italy, stressing that the approved reforms need to be applied. Renzi quit as premier last month after his flagship Constitutional reform was rejected in a referendum. Premier Paolo Gentiloni's current executive is mostly made up of former members of Renzi's cabinet.
   

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