Italian growth “exceeded our expectations in the first quarter of 2023” thanks to the easing of the gas crisis, the strong recovery of tourism and the strengthening of global demand. This was stated by Fitch, underlining that in the light of these dynamics it has raised its growth estimates for Italy in 2023 to +1.2% from the previous +0.5%
1′ of reading
Fitch left Italy’s sovereign rating unchanged at BBB, two levels above the “junk” category. The outlook is stable.
Italian growth “exceeded our expectations in the first quarter of 2023” thanks to the easing of the gas crisis, the strong recovery of tourism and the strengthening of global demand. This was stated by Fitch, underlining that in the light of these dynamics it has raised its growth estimates for Italy in 2023 to +1.2% from the previous +0.5%. “In 2024 we expect growth of 0.8%, slower than the 1.3% expected in March”, reads a note from the agency.
Fitch expects a drop in Italian public debt, which in 2024 should amount to 142.3% of GDP compared to 144.4% in 2022. However, the debt remains above pre-pandemic levels, when it reached 134.1% in 2019 %, and the average of countries that have a BBB rating.
The Italian government enjoys a “stable majority in parliament and strong support among voters. In the light of this and of the fragmented opposition, we believe it is possible for the government to last the entire mandate”. Fitch says it again, underlining that “political stability creates space for the government for a medium-term strategy”. Either way, Fitch warns, the coalition could face pressure to deliver on spending pledges made during the campaign.
View on ilsole24ore.com
2023-05-12 21:22:30
#Fitch #confirms #Italys #BBB #rating #raises #growth #estimates
