Off the wire
• Somali suspect charged in Kenya with ferrying explosives for terror attack  • Mugabe in S. Africa to boost bilateral ties  • Urgent: U.S. stocks end slightly lower amid strong dollar, global rallies  • All over in 10 minutes as Atletico defeat Real Sociedad  • U.S., Cuba not expected to re-open embassies before regional summit: Obama aide  • Roundup: Greek Cypriots ready for resumption of peace talks: spokesman  • Sino-Kenya relations cordial despite minor hiccups: diplomat  • UN highlights food safety on World Health Day  • Feature: 21 years after genocide, Rwandans remember victims  • 2nd LD Writethru: Russian nuclear sub on fire in dock, no casualties reported  
You are here: 　 Home

Roundup: Italy raises growth forecast to 0.7 pct for 2015

Xinhua, April 8, 2015 Adjust font size:

The Italian government delivered fresh estimates for the period 2015-2018 on Tuesday, after a preliminary review of a three-year Economic and Financial Document that has to be approved by April 10.

The government forecast gross domestic product (GDP) would growth by 0.7 percent in 2015 from the previous 0.6 percent predicted last year, Prime Minister Matteo Renzi said after the cabinet's meeting.

The cabinet also predicted GDP to grow by 1.4 percent in 2016, and by 1.5 percent in 2017.

Not further spending cuts nor new taxes would be planned for 2015.

"This year there are no new spending cuts, and no increase in taxes," Renzi said.

The Italian economy, the third largest in the 19-member eurozone, has faced its longest post-war recession and contracted for three years in a row since 2012. As such, the previous 0.6 percent growth forecast had been seen as quite optimistic at the time.

Now, improved economic conditions at global and European levels would allow better estimates, according to Italian Economy minister Pier Carlo Padoan.

However, the minister stressed the government was prudent in its new estimates.

"The macro-economic framework has improved, but we prefer to be cautious," Padoan said. "If the citizen and business confidence will consolidate as we expect, thus adding to the improved confidence the markets have shown towards Italy, these estimates might prove underrated and we might have even better figures."

The government sees the depreciation of the euro against the U.S. dollar, the bond-buying program launched by the European Central Bank, and the oil price falling as the major factors impacting Italy's economy positively.

The cabinet will also keep the country's deficit at 2.6 percent of GDP in 2015, in accordance with the target already set in October last year.

The deficit-GDP ratio is then expected to decrease to 1.8 percent in 2016, and 0.8 percent in 2017.

The Italian debt to GDP ratio would stabilize at 132.5 percent in 2015, and gradually decrease to 130.9 percent in 2016, 127.4 percent in 2017, and 123.4 percent in 2018.

An ongoing privatization program would contribute 1.7 to 1.8 percentage points in GDP between 2015 and 2018, Padoan said.

A cabinet's meeting expected to approve the 2015-2018 Economic and Financial Document is scheduled on Friday. (1 euro = 1.08 U.S. dollars) Endit