## Italy: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy

_IMF Staff Country Reports, March 20, 2020_

## Source details

**Canonical URL:** [Italy: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy](https://www.imf.org/en/publications/cr/issues/2020/03/19/italy-2020-article-iv-consultation-press-release-staff-report-and-statement-by-the-executive-49277)

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## Bibliographic details
- Published: March 20, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513537436.002

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### Overview and context
- Reflections of discussions with the Italian authorities in January 2020; based on information available as of January 28, 2020.
- Prepared prior to the outbreak of COVID-19 in Italy; therefore does not cover the outbreak or the related policy response.
- The outbreak has greatly amplified uncertainty and downside risks around the outlook; IMF staff is closely monitoring the health crisis and assessing its impact and the related policy response in Italy and globally.
- Overarching challenges identified: raise growth and enhance resilience.

### Key findings and outlook
- The IMF staff projects growth in Italy to be the lowest in the European Union over the next five years.
- High public debt remains a key source of vulnerability.
- Substantial progress has been made in strengthening bank balance sheets, but important weaknesses remain.
- To durably raise growth and reduce vulnerabilities, Italy needs:
  - faster potential growth; and
  - medium-term fiscal consolidation.

### Thematic areas covered
- Banking and Financial institutions: bank balance sheet strengthening noted, remaining weaknesses highlighted.
- Public finances: high public debt emphasized as a major vulnerability; medium-term fiscal consolidation recommended.
- Macroeconomic performance: Italy’s projected growth trajectory relative to EU peers flagged as weakest over the next five years.
- Labor and income: subjects include Income, Labor, Labor costs, Wage bargaining.
- Nonperforming loans: identified among banking sector concerns.
- National accounts and GDP ratio considerations referenced.

### Publication and metadata (as presented in the source)
- Publication date: March 20, 2020
- Based on information as of: January 28, 2020
- Pages: 80
- Volume: 2020
- Issue: 079
- Series: Country Report No. 2020/079
- DOI: https://doi.org/10.5089/9781513537436.002
- Stock No: 1ITAEA2020001
- ISBN: 9781513537436
- ISSN: 1934-7685
- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.

*Source: Italy: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Italy (IMF, March 20, 2020).*

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_Source: https://www.imf.org/en/publications/cr/issues/2020/03/19/italy-2020-article-iv-consultation-press-release-staff-report-and-statement-by-the-executive-49277_