OECD says Italy's economy will recover in 2015

(AGI) Rome, Nov 25 - Italy's economy will start recovering onlyby mid-2015, according to the latest estimates released by theOECD Outlook. The report emphasises that the country's GDP,after the 1.9 percent fall in 2013, will drop by another 0.4percent, but is expected to rise by 0.2 percent in 2015. By2016, the growth should be consolidated around 1 percent. Thefourth quarter in 2014 has still shown negative signs,recording a 0.5 percent loss. This is a downward revisioncompared to the estimates contained in the previous Outlookwhich had forecast a 0.5 percent growth of

(AGI) Rome, Nov 25 - Italy's economy will start recovering onlyby mid-2015, according to the latest estimates released by theOECD Outlook. The report emphasises that the country's GDP,after the 1.9 percent fall in 2013, will drop by another 0.4percent, but is expected to rise by 0.2 percent in 2015. By2016, the growth should be consolidated around 1 percent. Thefourth quarter in 2014 has still shown negative signs,recording a 0.5 percent loss. This is a downward revisioncompared to the estimates contained in the previous Outlookwhich had forecast a 0.5 percent growth of the Italian economyin 2014 and a 1.1 percent rise in 2015. The European CentralBank's supportive monetary measures should, according to theOECD, "ease financial conditions and facilitate a bank creditrecovery, thus promoting investments. Exports should boostgrowth. The general impact of tax policy is expected to belower in 2015, with tax cuts offset by lower spending.Unemployment rates will drop by 2016, although still rankinghigh, and salaries are expected to remain at low levels." Asfor the labour market, Italy's unemployment rate will continueto rise in 2014, reaching 12.4 percent, against 2013's 12.2percent, but should eventually start dropping in 2015, reducingto 12.3 percent, and by 2016 it should drop to 12.1 percent.Italy's slow growth rate and new structural reforms couldoffset a slower achievement of tax consolidation targets,according to the chief economist at OECD, Catherine Mann."Italy has still a long way to go as far as labour marketreforms are concerned and should streamline its tax system tofavour growth, especially in terms of assets and liabilities,"said Mann. The OECD supports the Italian government's option ofpostponing the budget balance to 2017, but urges the executivebodies to implement reforms. "In order to support economicgrowth the [Italian] government has adequately postponed taxconsolidation measures and has completed some phases of itsexhaustive structural reforms programme," reported the OECDOutllook release. (AGI).