Sunday, July 15, 2012

Italy's economy to shrink at least 2.4% this year

ROME: Italy's economy will contract by 2.4 percent or more this year, the head of the employers federation Giorgio Squinzi said on Thursday, doubling the official government forecast of a 1.2 percent shrinkage.

"In a best case scenario, GDP (gross domestic product) will go down 2.4 percent in 2012 and probably even more," Squinzi said at a conference in Rome.

"It is hard to see an improvement in the second half of the year," he said.

The head of Confindustria, who has clashed with Prime Minister Mario Monti in the past, also criticised the government by saying that a much-anticipated reform of labour laws had not gone far enough.

The Bank of Italy estimates the economy will contract by almost 2.0 percent and the International Monetary Fund expects a shrinkage of 1.9 percent. The official government estimate is is expected to be revised soon.

Italy's economy began shrinking in the third quarter of last year and contracted by a higher than expected 0.8 percent in the first quarter of 2012.

indiatimes.com



2 comments:

  1. I agree with Squinzi! Because as we know that a good start is the half of a job so the beginning should be in a powerful flow so that the further step can be faster. Thanks for a fruitful discussion.
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  2. Thanks for providing the information about Rome economical condition.Nice and informative blog.

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