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Economic Research

Italy Economic Outlook, Q4 2009

Executive Summary

  • A prolonged contraction of GDP will occur throughout 2009 and into 2010;
  • Structural rigidities continue to plague labor and product markets holding back the economic recovery in 2010;
  • Budget deficits will rise significantly and state debt will reach 117% GDP by 2010.

Growth

Italian GDP will contract 5.5% in 2009 with a further decline of 0.3% occurring in 2010 as the country struggles to recover from the global financial crisis. Italy has historically performed worse than much of Western Europe. GDP has been particularly sluggish, averaging below 1.0% per[...]

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