By Xavier Fontdegloria
Italy's economy will contract at a steeper pace than previously estimated this year and will grow less than expected in 2021 due to the resurgence of Covid-19 in autumn, according to projections by the country's statistics agency Istat.
The eurozone's third-largest economy is expected to contract by 8.9% this year, down from the 8.3% fall projected in June. For 2021, gross domestic product is expected to rise 4%, less than the 4.6% estimate released six months ago.
"After a strong recovery of production and trade during the summer, new containment measures of contagions, which are recently increasing in many countries, put a drag on international recovery perspectives," Istat said.
As for the labor market, Istat projects the unemployment rate to stand on average at 9.4% this year and to increase to 11% in 2021. In October, the unemployment rate came in at 9.8%.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
12-03-20 0554ET
