IMF: Italy's GDP +1% in 2011, debt at 120,6%

According to the International Monetary Fund, Italy will record GDP growth of 1% in 2011 and 1,3% in 2012, slightly less than expected. In fact, in April the IMF had forecast an increase of 1,1% this year and 1,3% next year. In 2010 the growth was 1,3%. Italian debt will amount to 120,6% of gross domestic product in 2011 and 120,3% in 2012.
Italian expansion will be lower than that of the Eurozone (+2% in 2011 and +1,7% in 2012), driven by Germany (+3,2% and +2%) and France (+2,1% and +1,9%). So-so Spain (+0,8% and +1,6%).
According to the Monetary Fund, the United States should advance by 2,5% this year and 2,7% next year, while Japan will record -0,7% in 2011 but +2,9% in 2012.
Global expansion therefore remains unbalanced and growth in advanced economies remains weak, but emerging and developing economies continue to progress at a sustained pace. Advanced economies need to look at the fragility of the financial sector that was at the origin of the crisis, according to the Fund. Structural reforms must be implemented to boost competitiveness and employment growth, which must be accompanied by fiscal and budgetary adjustments in order to restore market confidence and ease pressure on sovereign and banking spreads.