Italy GDP growth forecast CUT to 0.1 PERCENT after economy plunged into recession

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It be brought up after a turbulent few months for the Italian economy, during which the country slipped into recession in the second half of 2018 amid a keen spat with European Union chiefs over its budget. Il Unique 24 Ore daily reported on Wednesday that the Italian government is changing its GDP growth estimate for 2019 to 0.1, but is hopeful a planned growth helping package may lift this estimate to 0.2 percent. The publication persisted on to report the Government is targeting a deficit of 2.3 percent of GDP, from a launched 2.04 percent previously forecast in the budget. At the same time, Italian assiduity lobby Confindustria cut its forecast for GDP to zero from a previous 0.9 percent gauge.

It raised the deficit forecast for the year to 2.6 percent of GDP from a prior 2.0 percent estimate.

Italy plunged into recession after a deficient consecutive quarter of decline was recorded for the last three months of 2018.

The concision contracted by 0.2 percent in October to December of last year, after a let up of 0.1 percent in July to September.

Italy was warned yesterday by David Lipton, papal nuncio director general of the International Monetary Fund, that the nation could history a new contraction for the first quarter of 2019, deepening the woes of the economy.

Engaged in Lisbon, Portugal, Mr Lipton highlighted Italy as he spoke of the “glaring vulnerabilities” of some countries in the European Union which leave the bloc unprepared for future financial risks.

He said: “A serious recession could be very damaging for these provinces, because they will be shown to be ill-prepared.

“Their weaknesses could provide a serious setback for Europe’s goal of convergence of standards of living, productivity, of citizen well-being.”

Rome spent much of the latter half of 2018 at the converge of a bitter spat between European Union finance chiefs as a remainder its controversial budget.

The Italian government finally passed their pecuniary agreement at the end of December, averting a major showdown with the EU after being accused of breaching waste commitments.

Italy proposed a debt target of 2.4 percent of GDP but the EU devise only allow 2.04 percent for 2019, falling to 1.8 percent next year and 1.5 percent in 2021.

In February it was flung how morale among Italian manufacturers declined to its lowest level in practically three years.

National statistics office ISTAT saw its manufacturing reliance index fell to 101.7 in February from a revised 102.0 in January.

Its composite role morale index, combining surveys of the manufacturing, retail, construction and utilizations sectors, also declined in February to 98.3, its lowest in four years, from a improved 99.1 in January.

Consumer confidence fell in February to 112.4, the first finger’s lowest level since August 2017.

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