"The Italian economy has recovered strongly from Covid" but now it is "facing new great challenges".
This was stated by the IMF in Article IV on Italy, underlining that ensuring "an adequate supply of energy is a priority".
"Reinvigorating the growth trend is essential to strengthen public finances in order to achieve social and climate objectives", highlights the IMF.
Italian growth is expected to slow down following the war in Ukraine, the tightening of monetary policy, bottlenecks in production chains and high inflation, says the IMF, expecting Italy to grow by 3% this year and by 0. , 7% next with inflation expected at 6.7% in 2022. "The uncertainty about these forecasts is high and downside risks could materialize and weigh on the outlook, complicating the reduction of public debt".
The IMF welcomes the Italian authorities' commitment to the NRP and "recommends" continuing on the path to "increase productivity, investment and growth potential, but also to accelerate the green transition. Efficient execution of public investments and the momentum for reform will be essential for success. "