Italy's growth is set to slow,
the OECD said in its latest economic outlook on Wednesday.
"GDP growth is projected to slow to 0.9% in 2019 and 2020,"
the OECD said.
"Rising uncertainty and higher interest rates will lower the
propensity of households and firms to consume and invest,
offsetting the effects of the fiscal expansion on activity.
"Slowing growth in Italy's main trading partners will hinder
export growth".
The organization added that it does not expect Italy's public
debt of over two trillion euros to come down.
"Given slow growth, rising interest costs and a larger
deficit, the public debt ratio will cease to decline and remain
at nearly 130% of GDP," the report said.
"Gradually raising the primary budget surplus and boosting
growth is key for a durable reduction of the public debt-to-GDP
ratio".
The OECD also criticised the government's plan to effectively
lower the retirement age by making it possible for people to
start claiming a State pension when their age plus their number
of years of social-security contributions add up to 100.
"The reduction in the retirement age will worsen
inter-generational inequality by increasing already high
pension spending and will lower growth in the long run by
reducing the working age population," it said.
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