Italy trims 2019, 2020 GDP growth forecast after 0.1% contraction this year



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Italy trims 2019, 2020 GDP growth forecast after 0.1% contraction this year

Newly formed more-centrist coalition government of Italy of PM Giuseppe Conte had been surmising the nation’s GDP (Gross Domestic Product) to grow by only 0.4 per cent in 2020 after curbing out 0.1 per cent this year, pointing towards a dire need of an expansionary budget next year, at least three sources with direct knowledge regarding the issue had unleashed on Wednesday, the 18th of September 2019.

Nonetheless, Italy, the Europe’s third-largest economy by the coastline of Mediterranean, had previously projected a 0.2 per cent GDP growth this year and 0.8 per cent in 2020 on last April, however ended up with a likely contraction of 0.1 per cent by year-end.

Meanwhile, under the new GDP growth projection, Italy’s budget would likely to contain a raft of tax cuts alongside other fiscal injections in order to ramp up the nation’s economic outlook, said one of the sources.

Further inside the bid, another source briefed directly over the subject matter was quoted saying on Wednesday (September 18th) that Italy, the 8th-largest economy across the world by nominal GDP and 12th-largest by Purchasing Power Parity (PPP), would likely to target a budget deficit of 2.3 per cent, up from a 2.04 per cent this year, which would likely to spur another EU spat as EU Commission had warned the bloc’s superpower multiple times to keep its budget deficit below 2 per cent.