Italy sees GDP down 9% in 2020

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    ROME- Italy expects its coronavirus-hit economy to grow by more than 5 percent next year after shrinking 9 percent in 2020, two government sources told Reuters on Sunday.

    In April, the government of the anti-establishment 5-Star Movement and the centre-left PD party forecast a fall in gross domestic product of 8 percent this year and a 2021 rebound of 4.7 percent.

    The new forecasts, along with public finance projections, will be published next week, providing the framework for the 2021 budget which must be presented to the European Commission in mid-October.

    The euro zone’s third-largest economy has not seen annual growth of 5 percent for more than 40 years.

    The new forecasts, which still need to be finalized, are based on an unchanged policy scenario. This means they do not incorporate planned expansionary measures to be financed by the European Union’s Recovery Fund, the sources said.