The OECD said in is latest economic
outlook on Tuesday that Italy's recovery from the economic
earthquake caused by the COVID-19 pandemic will be "slow and
unequal".
It said that, after falling by 9.1% this year, GDP is projected
to expand by 4.3% in 2021 and 3.2% in 2022.
The report forecasts Italian unemployment will rise from 9.4%
this year to 11% next.
"Lockdowns and uncertainty about the pandemic will weigh heavily
on activity, investment and employment until general
immunisation has been attained," the OECD said.
"The unemployment rate will pick up during 2021 and remain high
in 2022.
"Consumption growth is projected to recover, but household
precautionary saving will remain elevated. "Investment is
expected to recover in 2022, as public investment rises and
firms in more resilient sectors such as manufacturing begin to
undertake replacement investment.
"The services sector, by contrast, will recover more slowly
as domestic demand and tourism remain weak until an effective
vaccine is widely deployed.
"This will exacerbate labour market and regional
inequalities".
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