Italy's employers lobby Confindustria on Thursday sharply reduced its economic outlook citing a deeper ongoing recession.
Confindustria projects the economy to shrink 2.4 percent this year, weaker than the 1.6 percent fall estimated in December. For the next year, gross domestic product is seen falling by 0.3 percent instead of an annual growth of 0.6 percent.
As a result, the budget deficit will deteriorate further. The deficit is expected to widen to 2.6 percent of GDP in 2012. It will then improve to 1.6 percent in 2013, the lobby said.
by RTT Staff Writer
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