GO
Loading...

Italy says 2013 recession to be deeper than thought

Tuesday, 29 Oct 2013 | 9:47 AM ET
An Italian cafe
Filippo Monteforte | Getty Images
An Italian cafe

Italy has cut its 2013 gross domestic product forecast to -1.8 percent from -1.7 percent, its economy minister said on Tuesday, adding that a predicted recovery next year would be stronger than expected.

Fabrizio Saccomanni told a Senate committee the economy would grow 1.1 percent in 2014, rather than 1.0 percent as previously forecasted, as he presented a budget aimed to address Italy's longest post war recession.

(Read more: Fears rise that Italy's 2014 budget could spark further trouble)

Earlier on Tuesday the Bank of Italy, also giving parliamentary testimony on the budget, said growth next year would be 0.7 percent, while the average forecast of 20 economists polled by Reuters this month pointed to just 0.5 percent.

Featured

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Europe Video

  • Jan Dunning, CEO of St Petersburg-headquartered hypermarket chain Lenta, says the situation in Ukraine has had no impact on the group, as consumer confidence remains unaffected in Russia.

  • Vincent Deluard, European strategist at Ned Davis Research Group, says the strong euro is a problem for the region's companies, especially for the large exporters.

  • European shares closed higher on Thursday as investors brushed aside concerns regarding Ukraine and focused instead on Wall Street earnings and the latest U.S. jobs data.