Giovanni Tria, the Economy Minister of Italy, is expecting that the growth of the company will pick up in the second half of the year as the measures that were introduced by the Italian Government to revive a virtually stagnant economy take effect.
The gross domestic product of Italy dropped by 0.1 percent in the third and fourth quarters of the previous year, placing the third-largest economy of the eurozone into a technical recession of two straight quarters of falling GDP.
However, economists said that an unexpected increase in industrial output last February suggested that Italy may already have exited the shallow recession that it fell into.
In an interview with state TV Rai today, Tria said that the measures that Rome is taking to support the economy would hopefully have a “positive although limited” effect on the growth rate of the GDP, which the government last week was reduced to an estimated 0.2 percent for the year.
He stated: “This implies a sustained growth as soon as from the second half of the year.”
The government said that the growth will be lifted in the second half of 2019 by a stimulus package that includes lower property taxes on factories and warehouses, simplified procedures for public tenders, and tax breaks on investments
It estimated that without this so-called “growth decree” the GDP would have increased by 0.1 percent this year.
Currently, the government is expecting the GDP growth to strengthen to 0.8 percent in 2020.
Today, Tria reiterated that the government ruled out a budget correction for the year, as well as a wealth tax.
He said that this would “hit at heart the savings of Italian people and have a destructive impact on growth.”
This September, the Italian government is set to update its targets again, when it will have to look for a way to avoid approximately 23 billion euros ($26 billion) of increase in sales tax that are scheduled to take effect next year, but which the ruling parties have already pledged to scrap.