Italy: 2005 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Italy
IMF Staff Country Reports, February 16, 2006
Source details
- Canonical URL
- Italy: 2005 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Italy
Other formats
Bibliographic details
- Published: February 16, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451819892.002
Major findings
- Potential growth is estimated at just 1¼ percent.
- Low productivity growth and high domestic costs have led to a steady erosion of competitiveness and export market share.
- The 2005 fiscal deficit target of 4.3 percent of GDP is estimated to have been met, thanks in part to measures introduced by the authorities.
- For 2006, the authorities have committed to a deficit target of 3.5 percent of GDP.
Fiscal outcomes and commitments
- 2005 fiscal deficit target: 4.3 percent of GDP (estimated to have been met).
- 2006 fiscal deficit commitment: 3.5 percent of GDP.
- Authorities introduced measures that contributed to meeting the 2005 target (measures are noted but not detailed in the summary text).
Growth and competitiveness risks
- Medium-term trends are characterized as troubling despite a better cyclical outlook.
- Key drivers of concern: low productivity growth and high domestic costs.
- Resulting impact: steady erosion of competitiveness and export market share.
Thematic coverage (subjects and keywords highlighted)
- Subject areas: Banking; Budget planning and preparation; Competition; Expenditure; Financial markets; Health care spending; Production; Productivity; Public debt; Public financial management (PFM).
- Keywords included in the source: asset quality; authority; Budget planning and preparation; Competition; council recommendation; CR; deficit; EU commitment; Europe; GDP; Health care spending; ISCR; Italy; October outturn; private sector; privatization process; Productivity; Western Europe.
Italy: 2005 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Italy, February 16, 2006.