(Finance) – For the International Monetary Fund there budgetary policy it can help the Italian economy deal with shocks and at the same time protect the sustainability of public finances. “Given the high debt public and tighter financial conditions, saving windfall income from inflation and accounting changes is advisable. A credible medium-term debt reduction plan would further mitigate debt-related risks,” he explained IMF in Article IV for Italy.
Furthermore, a complete and timely implementation of the PNRR is needed to increase the productivity and increase growth potential. “Reforms structural ambitious, which promote productivity, are a priority to compensate for the brake on production resulting from the contraction of the workforce due to the rapid aging of the Italian population. This requires measures to reduce unemployment and inactivity traps, decrease the ‘black’ and avoid supporting declining businesses,” Washington economists added.
The reforms of the PNRR, underlines the Fund, “are aimed at filling many shortcomings that hold back productivity and should be implemented fully and promptly. The strengthening of capacity administrative and executive of entities locals would favor efficient management of the large volume of projects and measures to speed up procedures should promote the competition and the integrity of financial resources”.
The IMF then underlined that an acceleration in the transition at renewable It would strengthen energy security and support the achievement of climate goals. The international institution has estimated that theItalian economy it will grow by 1.1% in both 2023 and 2024.
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