Standard & Poor’s: Italy Rating BBB with Negative Outlook, Minister of Economy There is no “Italy Risk”
Hülya Karahan:Production Editor
Standard & Poor’s confirms Italy rating to BBB with negative outlook | GDP down 9.9% in 2020, deficit 6.3%
According to the agency, the debt will be near the end of 2020
Gualtieri: “There is no risk in Italy, we will make it”
Italian Minister of Economy Gualtieri, the economic shock “is very heavy, but temporary”. And on debt: “We will return on a downward path already from 2021, also with the elimination of the safeguard clauses.
Standard & Poor’s confirms the BBB rating for Italy with a negative outlook. The agency’s estimates speak of a deficit that in Italy will rise to 6.3% of GDP at the end of 2020 with a debt close to 153%. Gross domestic product will contract by 9.9% in 2020, with a rebound next year of 6.4%. “The timing and form of the recovery remain uncertain,” S&P explains in a statement, forecasting an unemployment rate of 11.2% this year.
There is no “Italy risk“. This is what the Minister of Economy, Roberto Gualtieri says, speaking of the economic difficulties caused by the coronavirus epidemic. “We are facing a very heavy economic shock, but it is a temporary shock. It will not affect our fundamentals which are solid, as shown by the deficit data at the time of the outbreak of the crisis,” explains Gualtieri.
The “extraordinary effort” of public finance “that we are putting in place is necessary precisely to safeguard our growth potential”, the minister reiterates in an interview with La Stampa. And on debt, he underlines, “we will go back on a downward path already from 2021, even with the complete elimination of the safeguard clauses which will finally give back a space for economic policy: in this way we overcome an instrument that has proved to be totally inadequate”.
On the Mes, Gualtieri continues, “the government is united on the European negotiation. We said from the outset that common financing of common expenses is necessary for Italy, hence the centrality of the battle on the Recovery Fund. The Mes is only one of the instruments in the field and not the main one and has the function of ‘safety net’ “.
Standard & Poor's confirms Italy rating to BBB with negative outlook | GDP down 9.9% in 2020, deficit 6.3% According to the agency, the debt will be near the end of 2020 - /10
Standard & Poor's confirms Italy rating to BBB with negative outlook | GDP down 9.9% in 2020, deficit 6.3% According to the agency, the debt will be near the end of 2020