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UBS's Gloomy View on Italy Is Proved Right Very Quickly

Italy's President Sergio Mattarella Holds Talks To Find A New Prime Minister
Photographer: Alessia Pierdomenico/Bloomberg

The crystal ball appears to be in good working order at UBS Group AG, at least when it comes to Italy.

Analysts and strategists at the Swiss bank said in a report published on Thursday morning that they continue to see downside risks to the bank’s estimate for 0.4 percent gross domestic product growth in 2019. They added that the deficit targets Italy’s populist government agreed to with the European Union are likely to prove “difficult to achieve.”