Italy’s growth: Post-boost reboot – BNPP

Italy’s growth outlook has received a sizeable boost from loose fiscal and monetary policy of late and according to Clemente De Lucia Eurozone Economist, they see growth motoring up to 1.3% this year from last year’s above-trend 1.0%,.

Key Quotes

“Although growth should remain comfortably above trend next year, it looks set to slow to 0.9% as headwinds bite.”

“We are less positive on growth in the medium term though, with potential output likely to remain stifled by the high level of debt and structural rigidities.”

“A lack of a clear winner in Italy’s next general election could reduce the appetite for the structural reforms that Italy needs to boost its trend growth.”