The European Commission said
Monday that Italy's GDP rose by 0.9% in 2016, higher than its
forecast of 0.7%.
It said in its winter forecasts that it expects the Italian
economy to grow by 0.9% again this year and by 1.1% next, having
previously forecast a GDP rise of 1% for 2018.
It described Italy's growth as "stable by modest" as
"structural weaknesses hamper a stronger recovery".
Italy's economic outlook is threatened by "political
uncertainly" related to the possibility of early elections and
the "slow adjustment" of the country's troubled bank sector, the
European Commission said.
The Commission also said, however, that "a strong impulse may
yet come from external demand". Unemployment in Italy "remains
high" and the phasing out of incentives for new hires is
expected to lead to a deceleration in employment growth,it
added. The Commission revised up its forecast unemployment for
2016, from 11.5% to 11.7%, for 2017, from 11.4% to 11.6%, and
for 2018, to 11.3% from 11.4%.
ALL RIGHTS RESERVED © Copyright ANSA
