ROME: Italy's economy is expected to contract at a slower pace in the second quarter of this year and could stabilise in the second half, the deputy director general of the Bank of Italy Fabio Panetta said on Friday, citing analyst forecasts.
Italy is experiencing its longest recession in the postwar era and its economy shrank by 0.6 percent in the first quarter compared to the last three months of 2012.
Panetta said there was no room for Italy to stimulate growth by increasing its budget deficit because of tensions on financial markets and the need to reduce its massive debt.
He warned of a risk that institutional investors could shift to foreign markets without adequate share issues by Italian companies.
He said tax incentives could help encourage firms to list shares on the market.
indiatimes.com
Italy is experiencing its longest recession in the postwar era and its economy shrank by 0.6 percent in the first quarter compared to the last three months of 2012.
Panetta said there was no room for Italy to stimulate growth by increasing its budget deficit because of tensions on financial markets and the need to reduce its massive debt.
He warned of a risk that institutional investors could shift to foreign markets without adequate share issues by Italian companies.
He said tax incentives could help encourage firms to list shares on the market.
indiatimes.com
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