Italy : 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

February 6, 2019

Electronic Access:

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Summary:

This 2018 Article IV Consultation highlights Italy’s struggle with low economic growth and shows that poor social outcomes and structural weaknesses are at the core of this economic underperformance. Growth is projected to slow further, and the risk of recession has risen. The extent to which risks materialize depends largely on Italy’s policies. The authorities felt strongly that a fiscal stimulus is needed to promote economic growth and improve social outcomes. The authorities are also seeking to reduce temporary employment and support job search. The report suggests that faster potential growth is the only durable way for Italy to improve outcomes and enhance resilience. A package of structural reforms; credible fiscal consolidation based on growth-friendly and inclusive measures; and bank balance sheet strengthening structural reforms, fiscal policy, and financial stability are also recommended. By facilitating realignment of wages with productivity at the firm and regional levels, Italy’s high structural unemployment would fall, as would continued heavy reliance on temporary employment.

Series:

Country Report No. 19/40

Subject:

English

Publication Date:

February 6, 2019

ISBN/ISSN:

9781484397718/1934-7685

Stock No:

1ITAEA2019001

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

71

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