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NRRP delays could reduce Italy's growth - OECD

NRRP delays could reduce Italy's growth - OECD

Plan's investments are 'fundamental for sustainable growth'

ROME, 07 June 2023, 10:20

Redazione ANSA


Delays in the implementation of the post-Covid National Recovery and Resilience Plan (NRRP) could reduce Italy's growth levels, the OECD said Wednesday in its Economic Outlook 2023 report.
    The NRRP seeks to boost Italy's ecological transition and level of technological innovation via projects funded with the help of almost 200 billion euros in EU grants and low-interest loans on condition that all the agreed targets are met by June 2026.
    The government is trying to speed up the plan, amid reports it has become bogged down and concerns about whether the pledged reforms and projects can be completed by their deadlines "The rapid implementation of the NRRP structural reforms and public investment plans will be fundamentally important to support short-time activity and lay down the foundations for growth in the middle term... as well as the additional advantage of applying further pressure to reduce the debt/GDP ratio," the report said.
    Italy's GDP is set to rise 1.2% this year and 1% in 2024 after growing by 3.8% in 2022, the OECD said.
    The report said growth risks were balanced out by the high level of family savings, which could make a faster-than-expected rebound in domestic demand possible.
    It said downside risks included the recent turbulence the international banking sector has endured and possible delays in the NRRP public investment projects.


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