RE: French bank urges clients to ABANDON Eurozone with Britain tipped as lucrative investment11 Sep 2023 13:25
The European Commission has cut its forecasts for the Italian economy this year and next, following a slew of weak data which limits Prime Minister Giorgia Meloni’s scope to enact promised tax cuts in the 2024 budget.
Brussels said the country’s GDP was expected to grow by 0.9pc this year and 0.8pc in 2024, marking a downward revision of 0.3 percentage points for each year.
The government in Rome, which is due to update a raft of economic projections by September 27, forecast in April GDP growth of 1pc this year and 1.5pc in 2024.
While the Treasury has said Italy can still achieve the 2023 target, the latest indicators suggest next year’s goal is out of reach.
After a strong pick-up in the first quarter of 2023, Italy’s GDP shrank by 0.4pc in the second quarter and its services and manufacturing sectors contracted in August, raising the risk of weak economic activity extending into the third quarter.