The IMF on Tuesday hailed the
resilience of the Italian economy and the government’s
management of the public finances in a statement on the
completion of its Article IV Consultation for Italy.
“Italy’s economy has continued to expand at a moderate pace,” it
said.
“Real GDP grew 0.7 percent in 2024, supported by spending under
the National Recovery and Resilience Plan (NRRP) and a positive
contribution from net exports.
“Despite heightened global trade policy uncertainty, economic
activity in the first quarter of 2025 remained resilient amid
continued investment growth and a robust labor market”.
It noted that the 2024 public-sector deficit and debt ratios
turned out better than projected.
“Directors commended the strong fiscal performance last year and
the return to a primary surplus,” the Fund said.
“They nonetheless noted that public debt remains persistently
high and emphasized the need for sustained consolidation to
place its trajectory on a clear downward path.
“In this regard, they welcomed the authorities’ commitment to a
medium‑term fiscal plan that balances debt sustainability
considerations and investment needs and aligns with the EU
fiscal framework.
“To support these efforts, Directors called for continuing to
improve tax compliance, rationalizing tax expenditures, and
replacing inefficient subsidies with productivity‑enhancing
measures”.
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