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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