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IMF sees robust recovery in Italy this year

The International Monetary Fund (IMF) said that it expects Italy to have a "robust recovery" this year with the help of the COVID-19 vaccination campaign while adding that "large uncertainties remain".



In a statement on its 2021 Article IV Consultation with Italy, the IMF said continued policy support for households and businesses will be necessary until the recovery takes hold It said fiscal policy should "continue to cushion the economic effects of the pandemic through temporary and targeted measures", while stressing the need for a "credible plan to significantly reduce public debt ratios over the medium term".


It said it expects Italy's GDP to rise 4.3% this year and 4% in 2021, up from 4.2% and 3.6% respectively in forecasts released in April.


"The economic outlook depends on the path of the pandemic, the extent of structural change it will usher in, as well as the effectiveness of economic and public health policies," it said.



 

Credit: ANSA

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