IMF sees Italian economy contracting 12.8% this year

(ANSA) - ROME, JUN 24 - The International Monetary Fund (IMF) said Wednesday that it forecasts Italy's GDP will contract 12.8% this year in the wake of the coronavirus emergency. That is 3.7 percentage points more than the 9.1% contraction it predicted in April. The Fund sees the Italian economy bouncing back by 6.3% in 2021, up 1.5 points on its April forecast. The IMF sees Italy's debt-to-GDP ratio climbing from 134.8% in 2019 to 166.1% this year before it drops back to 161.9% in 2021. It predicts Italy's deficit-to-GDP ratio will be 12.7% in 2020 and 7% in 2021, up from its April forecasts of 8.3% and 3.5% respectively. (ANSA).