In a recently published report, the IMF argued that Italy wouldn’t be able to achieve economic growth through fiscal stimulus.
Key quotes (via LiveSquawk)
- Growth has to come through structural reforms.
- Italy must show willingness to deal with underlying problems; does not expect dramatic changes.
- Sees Italy’s GDP growth at 1pct in 2019, 0.9pct in 2020.
- Countries with significant vulnerabilities like Italy should prioritise cutting deficit, debt.
- Expansionary fiscal policy could have negative impact on Italy’s growth because market reaction would be very unfavourable.
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