Bank of Italy: Italy could exit recession in 2013

The Italian economy could exit from its recession in 2013, despite previous recessionary projections for the whole year, according to data released by the Bank of Italy.

Italy’s central bank said expectations for the 2013 average remain consistent with an exit from recession during the course of the year and GDP should stop declining supported by external demand.

To favour this trend, “it is crucial to proceed in a determined and timely fashion with the implementation of the measures that have been adopted,” the central bank added.

Forecasts by the International Monetary Fund projected a 0.7% contraction of the Italian economy for 2013.

Meanwhile, a significant improvement in fiscal conditions is expected in 2012 and 2013, the central bank added.

The public deficit is expected to drop to 2.6% of GDP from 3.9% at the end of 2012, and to reach 1.5% in 2014.

Italy should post a primary surplus of 2.9% of GDP in 2012, which will rise to 4% next year and 4.4% in 2014.

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