Continue recovery in Italy, albeit slowly, after a deep and prolonged recession. In the report at the end of the annual reconnaissance mission in Italy, the inspectors of the International Monetary Fund point out that the economy "continued to expand in the first quarter of 2016. At the same time, the labor market conditions gradually improved and credit non-performing loans (Npl) appear to be stabilizing".
"The recovery is likely to strengthen in the coming years, while remaining modest," said the Fund, confirming the estimate of growth of 1,1 percent this year and about 1,25 percent in 2017 -18. But “the risks are oriented towards the downside, linked among other things to the volatility of the financial markets, to risk Brexit, the immigration emergency and the headwinds generated by the slowdown in commercial activities worldwide”.
The IMF also acknowledged the Italian government has prosecuted a number of “impressive” reforms. From the institutional sector, to public administration, the tax sector, the labor market and the banking sector: "It is essential that these efforts be expanded and completed - said the Washington institute -, taking advantage of the beginning of the economic recovery and the favorable environment currently offered by low interest rates, the timely implementation of complementary and synergistic efforts in the financial and fiscal sector as well as structural measures should contribute to an increase in growth, to start the rebuilding of buffers and to reduce the initial cost of reforms. It is therefore important – warned by the IMF – that broad political support is maintained for the future in favor of a vast package of reforms”.
Finally, “the Atlas fund it represents a very important step because it reduces systemic risk” for Italian banks, says Rishi Goyal of the IMF.
