Advertisement

IMF increases its growth forecast for Italy

Share this article

IMF increases its growth forecast for Italy
File photo: riverlim/Depositphotos
08:50 CEST+02:00
The International Monetary Fund (IMF) on Monday increased its 2017 growth forecast for Italy to 1.3 percent from the previously more modest 0.8 percent.

But Italy's GDP growth will slow through 2018-2020 to reach 1 percent, the IMF said in its report following an annual mission to the country.

The Italian government itself has cautiously forecast growth of 1.1 percent in 2017 and 1 percent next year. Italy's economic growth remains one of the weakest in the European Union, according to the IMF.

ANALYSIS: Why Italy is still Europe's poor relation

"Weak productivity and low aggregate investment remain key challenges for faster growth, held back by structural weaknesses, high public debt, and impaired bank balance sheets," it said.

The IMF called on Italy to accelerate the process of cleaning up the banking sector, weighed down by dodgy debt made up of loans which risk never being paid back.

These amount to some 350 billion euros gross, one of the highest levels ever in the eurozone.

Italy is currently being run by caretaker Prime Minister Paolo Gentiloni and the uncertainty over what comes next is seen as dampening an economy saddled with unemployment over 11.5 percent of the workforce.

While the made-in-Italy brand is as strong as ever in fashion-related luxury and food and drink, in other sectors the country is suffering from declining competitiveness while international rivals forge ahead on that front.

A snail-paced legal system and mountains of red tape are also long-established complaints of the Italian business community.

READ ALSO: Italy mulls plan to scrap one- and two-cent coinsItaly mulls plan to scrap one- and two-cent coinsFile photo: macniak/Depositphotos


 

Share this article

Advertisement

From our sponsors

Property of the week: Ancient meets modern in Stimigliano

Stimigliano is an ancient settlement on a hill near Rome. This week's Property of the Week features a newly-restored villa in the town.

Advertisement
Advertisement
3,398 Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement