Italy, IMF revises GDP estimates upwards

Italy, IMF revises GDP estimates upwards
Italy, IMF revises GDP estimates upwards

(Teleborsa) – The International Monetary Fund revises upwards the estimates for the growth of Italian GDP. According to the Fund, which concluded the annual consultation on the tricolor economy, the Gross Domestic Product will record an expansion of 4.3% this year and 4% in 2022. Forecasts that compare respectively with + 4.2% and the + 3.6% indicated last April.

The IMF, on the other hand, sees the deficit due to the Covid crisis and the measures taken to address it. The deficit passes by 2021 to 11.8% after 9.5% in 2020, and then decreases to 6% next year. As for the debt / GDP ratio it is expected to reach 159.9% of GDP for this year and then drop slightly to 157.9% next year. Estimates on theinflation to 0.8% in 2021 and 1% in 2022.

The International Monetary Fund applauds the strong and decisive political choices made by the Italian authorities that have cushioned the social and economic impact of the pandemic and reports that “a solid recovery is expected in 2021” even if “great uncertainty remains”. For this reason, it is sent to maintain supportive policies until the recovery has strengthened.

The Fund recommends that fiscal policy “continue to mitigate the economic effects of the pandemic>” through temporary and targeted measures coupled with “a credible plan to significantly reduce public debt in the medium term”.

In addition, the Italian IMF to “a rapid modernization of the public administration and the judiciary, efficient public procurement, better governance of public investments and a reduction of barriers to competition”.

(Photo: © Andrej Kaprinay, Ing./123RF)

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