Italy's growth set to slow - OECD

(ANSA) - Paris, November 21 - 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.