Italy's GDP to fall 0.2% this year-OECD

Organization sees deficit rising to 2.5%

(ANSA) - Rome, April 1 - The OECD said in its latest Economic Survey of Italy on Monday that, after a "modest" recovery, the Italian economy is weakening. "GDP is projected to contract by 0.2% in 2019 and expand by 0.5% in 2020," the report said. "Expansionary fiscal policy and low growth will push the general government budget deficit to 2.5% of GDP in 2019 from 2.1% in 2018.
    "The 2019 budget rightly aims to help the poor but its growth benefits are likely to be modest, especially in the medium term".
    The public debt as a share of GDP remains high, at 134%, and is a source of risks, the OECD said.
    The government had forecast growth of 1% this year and was aiming to keep the deficit-GDP-ratio within 2.04%.
    But several national and international bodies have revised down their growth forecasts after Italy slipped into recession in the second half of 2018.
    On Sunday Economic Minister Giovanni Tria said that "the most productive part of the Italian economy, manufacturing for exports, is stationary".
   

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