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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