(MENAFN- AzerNews) The Italian economy is resilient but there is a risk of GDP
falling, the International Monetary Fund said Wednesday, Azernews
reports, citing ANSA.
In a report also hailing the government's pledge to bring down
debt, the IMF said the Italian economy has navigated the effects of
the war in Ukraine well, proving to be "resilient" to shocks.
After growing by 3.7% in 2022, growth is expected to enter a
slower phase with "mainly downside risks" to growth, which the IMF
on Tuesday put at 1.1% in 2023 and 0.9% in 2024. However, the Fund
emphasises that "the overall risk of stress on Italy's sovereign
debt is moderate" The IMF went on to highlight the importance of
decisively reducing public debt and applauded the Italian
authorities' commitment in this regard, the fund said at the end of
the Article IV consultations, emphasising that the short-term
adjustments decided upon are adequate.
"In the medium to long term, a strong primary surplus is needed
to support a decisive debt reduction," the Fund noted, pointing out
that the consolidation will have to be supported by "efficient and
well-defined measures".
Italy's debt-to-GDP ratio was 143.5% in the January-March 2023
period, down from 144.4% in the previous quarter, Eurostat said on
Friday.
Italy has the second highest debt in the eurozone after
Greece.
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