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EU cuts Italian growth forecast for 2022 to 2.4%

EU cuts Italian growth forecast for 2022 to 2.4%

Commission highlights 'pronounced downside risks'

ROME, 16 May 2022, 11:32

Redazione ANSA

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The European Commission said Monday that it has revised down its GDP growth forecast for Italy for 2022 to 2.4%, down from the 4.1% it predicted in February.
    It said it expects the Italian economy to grow by 1.9% next year, down from its previous 2023 forecast of 2.3%.
    The Commission said "the spillover effects from Russia's military aggression against Ukraine exacerbate existing supply-chain disruptions and price pressures," it its spring economic forecasts.
    It said this year's growth in Italy is mostly attributable to a carryover effect from brisk recovery of 2021 from the COVID-19 induced slump.
    It said the Italian economy's return to pre-crisis output levels has been postponed to the second half of 2022 as a result.
    "The outlook remains subject to pronounced downside risks," the Commission said.
    "Namely, as one of the largest importers of Russian natural gas among EU countries, Italy would be severely affected by abrupt supply disruptions".
    It said Italy's inflation rate is set to climb to close to 6% this year and average 2.3% in 2023.
    It said government deficit and debt are projected to decline to 4.3% and 146.8% by 2023, as pandemic-related policy support is phased-out.
   

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