Fitch upgrades Italy by one notch to “BBB” due to its growth expectations

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Dec 3 (Reuters) – Fitch raised Italy’s rating from BBB- to BBB on Friday as it expects the country’s economy to grow after reopening after the COVID-19-led pandemic lockdowns.

The rating agency believes that high vaccination rates and the use of European Union funds will fuel the country’s growth, supported by public and private investments.

Fitch added it expects the Italian economy to grow a robust 6.2% in 2021, faster than previously expected.

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Italian data has been strong lately in both industrial and service sectors, and Mario Draghi’s nine-month-old government forecasts predict the economy will exceed the official 6% target this year after a record drop of 8.9 in 2020 % was caused by the locks. Continue reading

“Given the recent strong performance, we are more confident that the strong and rapid economic recovery and next-generation EU spending will offset any ‘scars’ from the pandemic,” Fitch said in a statement.

However, she added: “With the parliamentary elections coming up by March 2023 and the current government of national unity being supported by ideologically diverse parties, the implementation of reform measures could slow down in 2022 and will be more uncertain beyond the parliamentary elections.”

The agency kept Italy’s outlook at “stable”.

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Reporting by Nilanjana Basu in Bengaluru; Adaptation by Amy Caren Daniel

Our standards: The Thomson Reuters Trust Principles.


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