Italy is still the bottom of
class in the eurozone for growth, the IMF said on Tuesday, even
though the fund revised down its GDP forecasts for France and
Germany.
The IMF said it expects Italy's GDP to rise 1.2% this year
and 1% in 2019, down from 1.5% in 2017.
The figures are the same as the IMF gave for Italy in July,
when it revised down its previous forecasts by 0.3 of a point
for this year and 0.1 for next due to the deterioration of
external demand and uncertainty about the new government's
agenda.
"The recent difficulties in forming a government in Italy and
the possibility of a reversal of the reforms and the
implementation of policies that could damage the sustainability
of the debt has sparked an increase in the (bond) spreads," the
IMF said in its new World Economic Outlook.
The IMF also called on the new government to keep the
labour-market and pension reforms passed by centre-left-led
governments in recent years.
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