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OECD sees flat growth for Italy

Christian Fernsby |
The OECD said in its latest economic outlook that it expects Italy to register flat growth this year.

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But it also said that the government's policies, which include the introduction of the 'citizenship wage' basic income, should bring down poverty.

"GDP is projected to stagnate in 2019 and expand in 2020," the OECD said.

"Sluggish employment growth and a rising household saving rate are holding back private consumption, while weak external demand and global trade tensions are hurting exports. "

Lower business confidence and weak demand are depressing private investment, while project planning and execution delays continue to hinder public investment.

"Consumer price inflation has moderated markedly as energy price pressures have abated and private-sector wage growth remains modest.

"Fiscal expansion and low growth are projected to widen the budget deficit to 2.4% of GDP in 2019 and 2.9% of GDP in 2020.

"The planned large increase in social spending will help to reduce poverty".

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