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Successful Italian Economic Plan Despite Political Stalemate


Abril, 27 2018
watermark Economic news

Italian caretaker government already established its updated multi-year economic plan on Thursday. This confirmed the September outlook amid the failure of political parties to create a new government during the erratic elections in March.


Economy Minister Pier Carlo Padoan had spoken after the cabinet meeting, saying that the GDP is possible to increase by 1.5 percent this year with the same rate in 2017. He described the prospect as “prudent” despite the weakening of the latest economic data including the industrial output monthly decline in January and February. This will be reviewed by the Economic and Financial Document (DEF) in Brussels.


The national election held on March 4 resulted in a hung parliament while the Democratic Party (PD) who rules the caretaker government was able to conform to the DEF.


Regardless what type of new government came forth, the DEF’s predictions would likely change in September prior the presentation of Italy’s draft budget for 2019. Moreover, Pardoan stated that the budget deficit will fall to 1.6 percent of the GDP in 2018, which is lower from 2.3 percent in the past year but still coincides with the earlier target.


Italy’s Gross Domestic Product (GDP) for next year is projected to slow down by 1.4 percent and 1.3 percent growth in 2020. Debt was also reduced by 130.8 percent of the GDP this year, showing a lower percentage point in 2017. However, the figures are higher than the earlier estimate of 130.0 percent which could possibly decrease to 128.0 percent the following year, says DEF.


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El mercado de divisas es altamente especulativo y complejo por naturaleza, y puede no ser adecuado para todos los inversores. Las operaciones en Forex pueden resultar en ganancias o pérdidas sustanciales. Por lo tanto, no es aconsejable invertir dinero que no puede permitirse perder. Antes de utilizar los servicios ofrecidos por ForexMart, reconozca los riesgos asociados con las operaciones en Forex. Busque asesoramiento financiero independiente si es necesario. Tenga en cuenta que ni el rendimiento pasado ni los pronósticos son indicadores confiables de resultados futuros.