Italy has downgraded its economic forecasts, narrowing prime minister Matteo Renzi’s chances of implementing any economic boost ahead of the December 4 constitution referendum.
The Italian cabinet slashed its estimated gross domestic product growth for 2016 to 0.8 percent against the 1.2 percent predicted in April. In 2017, only 1 percent growth is expected compared to a prior estimate of 1.4 percent.
At a press conference, Italian finance minister Pier Carlo Padoan commented that the cause was the global situation. “Not only is the global environment unfavourable but it is worsening, in terms of slower growth perspectives internationally and in Europe, and also because the euro has appreciated this year, instead of losing value, which has been another brake on the European economy.”
Prime minister Renzi acknowledged the forecasts, but was positive about the outlook. “Minister Padoan has said that the GDP is lower that we hoped. It’s the truth… But figures that were negative a few years are positive again, although they are not growing at the rate we would like… 20 years ago, Italy had people scratching their heads, but now it’s one of the most interesting countries in which to invest.”
Meanwhile, the government has announced plans to up low-income pensions. Based on the law expected to be passed by the end of this year, over three million Italians will receive a 30 percent increase in December 2017.
