In light of the worst-than-expected Italian GDP data (-0,2%) in the second quarter, "we now expect the Italian economy to contract by 0,1% in 2014, against the previous forecast of 0,5% growth ”. This was told to Affaritaliani.it by Sarah Carlson, Vice President - Senior Credit Officer of Moody's Investors Service.
“All of this – he added – makes deficit and debt reduction more difficult and will lead to the implementation of more politically demanding structural economic measures. The Italian government assumes a deficit of 2,6% of GDP in 2014 and its stability program forecasts a deficit of 1,8% in 2015. We think Italy will miss both of these targets (which currently project a deficit 2,7 .136,4% of GDP in both years, with a significant risk of further upward revisions), and that the debt burden will peak at 2014% of GDP in 135,8 and then fall to XNUMX% in 'next year. The recession in Italy will have negative effects on fiscal policy and on the general political climate, both at national and European level”.
