IMF: Italy won't achieve economic growth through fiscal stimulus

Eren Sengezer FXStreet

In a recently published report, the IMF argued that Italy wouldn't be able to achieve economic growth through fiscal stimulus.

Key quotes (via LiveSquawk)

Growth has to come through structural reforms.
Italy must show willingness to deal with underlying problems; does not expect dramatic changes.
Sees Italy's GDP growth at 1pct in 2019, 0.9pct in 2020.
Countries with significant vulnerabilities like Italy should prioritise cutting deficit, debt.
Expansionary fiscal policy could have negative impact on Italy's growth because market reaction would be very unfavourable.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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