Italy’s federation for employers has cut their 2014 GDP estimate to 0.2% from 0.7% with their chief economist, Luca Paolazzi saying that;
“The health of Italy’s economy remains fragile. The slow growth sickness has not been cured and the patient is still weak”
He sees Q2 GDP at 0.3% up from -0.1% in Q1 and raises the deficit to GDP forecast to 2.9% from 2.7%. He urges the Italian government to act quickly to boost investments, reduce taxes, overhaul wages and free up credit for companies.
Italy’s government forecasts 0.8% growth for 2014 and 2.6% deficit to GDP