World Economy

Italy to Cut Growth Forecasts

Italy to Cut  Growth ForecastsItaly to Cut  Growth Forecasts

The Italian government will revise down its forecasts for growth and inflation when it presents a new macroeconomic scenario for its budget law, Economy Minister Pier Carlo Padoan told newspaper Il Messaggero on Saturday, Reuters reported. The government forecasts full year growth of 1.2% this year, but most analysts expect a rise of below 1% in the gross domestic product after the economy showed no expansion in the second quarter. Talking about troubled bank Monte dei Paschi di Siena, whose CEO abruptly stepped down on Thursday, Padoan declined to say whether the bank would put back a badly-needed capital increase to next year. “It is up to the bank’s management to decide the right window of opportunity,” for the capital increase, Padoan said. When asked about a possible delay in a further privatization of the Italian post office to 2017, Padoan said it was up to Poste Italiane to decide the timing of a planned share sale.