Italy GDP to fall 0.6% 2020-IMF

(ANSA) - New York, March 20 - Italy's GDP will fall 0.6% in 2020 while the public debt will rise to 137% of GDP and the budget deficit to 2. 6% of GDP due to the coronavirus, according to a new report from the International Monetary Fund dated March 11.
    There is a risk that "if the infections were to continue to increase" there could be a "deterioration in confidence" and a further contraction of economic activity with the possible "return of the nexus between sovereign debt and banks", the IMF said.
    The IMF praised the coronavirus response of the Italian authorities and recommended "coordinated regional and international action to tackle the effects of the pandemic".
    It said Italy's response had been "rightly focused on fighting the pandemic and supporting the health system, workers, businesses and households".
    The IMF said the next action should include "structural reforms to boost productivity and investments, and a credible medium term plan to consolidate the budget to put the debt on a downwards trajectory, as well as measures to support the financial sector".