The European Commission said
Thursday that it has cut its growth forecast for Italy for 2020
from 0.7% to 0.4%.
In its autumn economic forecasts, the Commission said:
"Italy's economy stalled at the beginning of 2018 and still
shows no signs of a meaningful recovery".
The Commission left its GDP forecast for Italy for 2019
unchanged at 0.1%.
Italy was bottom for growth in the EU27 for both years.
"In 2020, growth is set to pick up modestly on the back of
rising external demand and moderate household spending, though
the latter will be partly dampened by a weakening labour
market," the Commission said.
"Government deficit and debt are set to increase over the
next years, amid weak economic growth and the rising costs of
past measures.
"Consumer price inflation is set to decrease this year and
pick up moderately in 2020-2021".
It said it expects Italy's public debt to rise from 136.2% in
2019 to 136.8% in 2020.
It sees the deficit rising from 2.2% in 2019 to 2.3% in 2020.
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