IMF Cuts Italy’s Growth Forecasts, Cites Vulnerable Lenders
- Stock prices show concerns over banking system, the fund says
- IMF’s GDP estimate for next year below Italian government goal
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The International Monetary Fund cut Italy’s growth forecasts for the second time in less than three months as it cited investors’ concerns over the outlook for the country’s banking system.
Italy’s gross domestic product will expand 0.8 percent this year and 0.9 percent next, the Washington-based IMF estimated on Tuesday in its World Economic Outlook. In July, the fund had already reduced its projection for the euro-region’s third-biggest economy, saying it expected a growth of 0.9 percent in 2016 and 1 percent in 2017.