Bank of Italy cuts Italy’s growth outlook following Brexit

The outcome of last month's referendum in Britain will have "effects on the economic situation which are still hard to assess, but nonetheless it has notably increased the risks"

ROME (Reuters) – Italy’s economy will grow by less than one percent this year and only marginally faster in 2017, the Bank of Italy said on Friday, cutting its previous forecasts as a result of Britain’s decision to leave the European Union. The outcome of last month’s referendum in Britain will have “effects on the economic situation which are still hard to assess, but nonetheless it has notably increased the risks,” the central bank wrote in its quarterly bulletin. Italian gross domestic product (GDP) is likely to grow “slightly less than one percent this year and by about 1 percent in 2017,” the bulletin said, echoing identical forecasts made on Tuesday by the International Monetary Fund.. Just last month the Bank of Italy forecast growth of 1.1 percent in 2016 and 1.2 percent in 2017, downwardly revising both years from previous forecasts made in January, of 1.5 percent in 2016 and 1.4 percent in 2017. Economists have been racing to downgrade Italy’s outlook since the British referendum. Employers’ lobby Confindustria now sees growth of just 0.8 percent this year and 0.6 percent in 2017. Recent indicators suggested that even before the referendum Italy’s economy was slowing down, and growth in the second quarter of this year “was probably less” than the 0.3 percent expansion seen between January and March, the bulletin said. National statistics bureau ISTAT will release Italy’s second quarter GDP data on August 12.

The euro zone’s third largest economy emerged from a three year recession at the start of 2015 but growth has remained listless and continued to underperform most of the euro zone, as it has done for well over a decade.  The bulletin also said that Italian banks’ funding remained broadly stable between February and May despite the ongoing reduction in bond issuance. An increase in deposits helped offset the drop in bonds held by households.

(Reporting by Gavin Jones and Valentina Za)

Subscribe to our newsletter

Join Weird Italy, Guide to Places and People in Italy

Weird Italy 35d34cee42cbb06848a4b6ac844a4ae7?s=116&d=mm&r=g Bank of Italy cuts Italy's growth outlook following Brexit Latest Italian News and Videos  Italy's economy ISTAT economy Confindustria Brexit bank of italy
WeirdItaly
Lifestyle weblog about everything that happens in Italy: photography, places, people, fashion, Italian movies and books, news and much more
28FansLike
1,173FollowersFollow
307SubscribersSubscribe
Weird Italy catullo-title Bank of Italy cuts Italy's growth outlook following Brexit Latest Italian News and Videos  Italy's economy ISTAT economy Confindustria Brexit bank of italy

Exploring Catullus poet Roman villa ruins

0
Catullus Caves, in Sirmione, on the shore of Garda lake, are the ruins of an ancient and majestic Roman villa. The name caves was coined...
Weird Italy THE-WOLF-AND-THE-LAMB-324x160 Bank of Italy cuts Italy's growth outlook following Brexit Latest Italian News and Videos  Italy's economy ISTAT economy Confindustria Brexit bank of italy

The Wolf And The Lamb, PHÆDRUS

0
Driven by thirst, a Wolf and a Lamb had come to the same stream; the Wolf stood above, and the Lamb at a distance...
Weird Italy ugolino-title Bank of Italy cuts Italy's growth outlook following Brexit Latest Italian News and Videos  Italy's economy ISTAT economy Confindustria Brexit bank of italy

Ugolino, the Cannibal Count

0
'Father our pain', they said, 'Will lessen if you eat us you are the one Who clothed us with this wretched flesh: we plead For you to...
Weird Italy 1908-messina-earthquake-018 Bank of Italy cuts Italy's growth outlook following Brexit Latest Italian News and Videos  Italy's economy ISTAT economy Confindustria Brexit bank of italy

1908 Messina Earthquake and Tsunami, 25 images

0
In 1908 an earthquake and tsunami hit Messina and Reggio (in the Messina Strait, Sicily-Calabria) causing 123,000 deaths. Both cities were almost completely destroyed. On December...
Weird Italy Valley-of-the-Temples-324x160 Bank of Italy cuts Italy's growth outlook following Brexit Latest Italian News and Videos  Italy's economy ISTAT economy Confindustria Brexit bank of italy

3 Less-Known Places to Visit in Italy

0
Italy is one of the best places to visit while being in Europe. It’s a great choice regardless of the season. You can visit the...

The Maestro of Cinema: A Yearlong Celebration of Federico Fellini

January 20, 2020 would have been Federico Fellini's 100th birthday, so Incanto Productions & Favale Media are using the milestone...

Mobility And Innovation: The Deployment Of The ‘Olli’ Self-Driving Shuttle Starts In Turin

Olli, a self-driving, electric, 3D-printed shuttle, is an innovative product developed for urban mobility and designed with particular attention to accessibility...

Festival of Italian and British Supercars Brings International Flair to 2020 NAIAS

The North American International Auto Show (NAIAS) today announced the addition of Motor Bella Presented by PNC Bank – a European supercar...

Federprivacy: 2019 Fines Were More Than €400 Million in Europe Because of Data Protection...

2019 Data Protection Violations Fines. Last year, the data protection authorities in EEA imposed 190 fines...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close