Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Italy GDP may shrink slightly more than 8% in 2020, says economy minister

share with twitter share with LinkedIn share with facebook
06/12/2020 | 12:10pm EDT
FILE PHOTO: Streets are seen virtually deserted in Venice as the Italian government continues restrictive movement measures to combat the coronavirus outbreak, in Venice

Italian Economy Minister Roberto Gualtieri said on Friday that the country's economic contraction this year may be slightly worse than the 8% decline currently forecast by the government.

The Bank of Italy has forecast Italian gross domestic product to fall by 9.2% and the European Commission projects -9.5%, as the economy buckles under the impact of the coronavirus.

Speaking at a forum organised by Goldman Sachs, Gualtieri said in a video link-up that even though data for April and May had been broadly as the government anticipated and a recovery was now expected, some sectors, such as tourism, would struggle for longer.

"That is the reason why we think our forecast may be slightly revised to the downside", he said.

Asked about the sustainability of Italy's huge public debt, targeted to rise to 155.7% of GDP this year, Gualtieri said the government intended to focus on improving the country's growth potential while reducing borrowing from next year.

"We want to significantly boost public and private investment... growth enhancing policies and fiscal sustainability, that is the core of our strategy," he said.

Gualtieri, from the centre-left Democratic Party, said Italy's debt would come down next year and decline "substantially" in future years when the country would return to running a budget surplus net of interest spending.

This year's overall deficit is targeted to jump to 10.4% of GDP as the government ramps up borrowing to try to soften the economic impact of one of the world's worst COVID-19 epidemics.

A wealth tax to raise resources for extra spending or bring down the debt was not in the government's programme, Gualtieri said.

Despite the recession tax revenues were holding up much better than expected, he said, thanks to the government's fight against tax evasion which was bearing fruit before the virus outbreak.

These efforts will continue to recoup some of the estimated 100-120 billion euros of lost revenue every year, Gualtieri said, adding that wanted Italy to become a world leader in terms of digital payments and creating a "cashless society."

(Reporting By Gavin Jones and Giuseppe Fonte, writing by Gavin Jones; Editing by Toby Chopra)


Stocks mentioned in the article
ChangeLast1st jan.
RISE, INC. 7.69% 28 End-of-day quote.-6.67%
THE GOLDMAN SACHS GROUP, INC. -2.71% 195.68 Delayed Quote.-12.52%
WORLD CO., LTD. -0.86% 1384 End-of-day quote.-48.57%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
06:50pLeading Cybersecurity Expert Kate Fazzini Joins IMPACT! Podcast Guestlist
BU
06:35pWORLD BANK : Working Together for Resilience and Economic Growth in the Sava and Drina Corridors
PU
06:33pLouisiana hunkers down as storm Zeta takes aim at state
RE
06:33pU.S. telecoms regulator to vote to split key spectrum block between autos, Wi-Fi
RE
06:30pGALP ENERGIA SGPS S A : and BM-S-11 partners agree on a new Field Development Plan for Tupi and Iracema
PU
06:21pFormer New York City accountant who admitted aiding al Qaeda to be released from prison early
RE
05:55pBrexit talks at most difficult point, European Council President Michel says - Telegraph
RE
05:43pTyson Foods workers to replace some federal inspectors at U.S. beef plant
RE
05:40pCENTRAL BANK OF TRINIDAD AND TOBAGO : Public Notice - Introduction of the New Polymer $5, $10 and $20 Notes
PU
05:37pLiberty Oilfield reports smaller-than-expected loss, sees frac fleet growth
RE
Latest news "Economy & Forex"