(ANSA) - Rome, October 19 - The Italian economy is slowing,
the Bank of Italy said on Friday, reporting that GDP rose by
0.1% in the third quarter of 2018 with respect to the previous
three months.
In spring, Italy's GDP rose 0.2% in quarter-on-quarter terms,
which in turn was down slightly on the growth registered in the
winter months, the central bank said.
The effects of the government's 2019 budget are linked to
"the confidence of savers and investors towards the process of
righting the public finances," the Bank of Italy added.
The government has said it will let Italy's deficit rise to
2.4% of GDP next year in an expansive budget designed to boost
growth.
The European Commission has warned Italy that the plan would
breach the Stability and Growth Pact and Italy's bond spread has
come under heavy pressure.
Foreign banks have reduced their exposure in Italian BTP
Treasury bonds by 42.8 billion euros in the first eight months
of the year, the Bank of Italy said.
In July and August they sold sovereign bonds to the tune of
8.7 billion euros, the central bank said.
Italian financial market have been racked by strong tensions
linked to investors' uncertainty on the direction of economic
and financial policies" and this has boosted the German-Italian
bond spread, the Bank of Italy said Friday.
Growth slowing says Bank of Italy
Budget effect 'depends on market confidence'- central bank