Italy Faces ‘Two Lost Decades’ as Reforms Stall, IMF Warns

The IMF expects Italy to grow by “just under 1pc” this year, while growth in 2017 is now estimated to be “about 1pc”. This is down from previous projections of 1.1pc in 2016 and 1.3pc in 2017.

by Szu Ping Chan

Italy faces “two lost decades” unless policymakers do more to raise living standards, clean up the country’s banks and control its massive debt mountain, the International Monetary Fund has warned.

The IMF said the recovery in the eurozone’s third largest economy remained “fragile” as it described the pace of post-crisis reforms as slow and “piecemeal”.

The UK’s decision to leave the EU was also expected to drag down Italian growth over the next two years, despite the country’s limited trade and financial links to the UK.

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