ISTAT said Wednesday that it has
revised down its forecast for Italy's GDP growth this year from
1.3% to 0.3%.
The statistics agency added that the sharp deceleration of
economic activity will hit the labour market, with unemployment
set to rise to 10.8% this year, compared to 10.6% in 2018.
In November ISTAT had forecast Italy's unemployment rate for
2019 would be 10.2%.
"In 2019, GDP is expected to increase by 0.3% in real terms,"
ISTAT said.
"Domestic demand will provide a contribution of 0.3
percentage points while foreign demand and inventories will
provide a null contribution.
"In 2019, exports will increase by 1.7% and imports will grow
by 1.8%.
"Residential households consumption expenditure is expected
to grow by 0.5% in 2019.
"The stabilisation in employment and the wages increase will
support households purchasing power. Investment are expected to
decelerate (+0.3%).
"Labour market conditions will stabilize over the forecasting
period.
"Employment growth is expected to increase at 0.1% in 2019.
At the same time, the rate of unemployment will slightly
increase at 10.8% in the current year.
"This projections take into account the less favourable
international framework".
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