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Unemployment to near 13% through 2015

Bank of Italy sees 1% inflation in 2014, 1.4% next year

17 January, 15:53
Unemployment to near 13% through 2015 (ANSA) - Rome, January 17 - The timid economic recovery this year and the estimates for next year will have a delayed effect on combating rising unemployment levels, which the Bank of Italy estimates at 12.8% this year and 12.9% next year, the central bank reported Friday. In its latest monthly bulletin, the Bank of Italy also cut its inflation targets from its previous July release to just above 1% for this year and 1.4% in 2015. "Inflation, which dropped to 1.3% in 2013, would have dropped slightly more this year to then level itself up at about 1.5% in 2015," the central bank said in its report. The central bank said it expected gross domestic product (GDP) to expand 0.7% this year, and 1% next year, as the euro zone's third largest economy pulls out of a two-year recession, its longest since the postwar. The bank added that only a pickup in internal demand can extend the recovery to the labour market, adding that even as the first signs of the stabilization of the economy are emerging together with a posted increase in the number of hours worked, the labour market conditions remain difficult.