Fitch downgrade growth projections for Italy’s growth projection for its 2019 GDP shrunk from 1.1% to 0.3%, according to rating agency Fitch.
That number makes Italy’s growth the slowest growth in the 19-member Eurozone.
The slowdown of the Eurozone’s third economy is in line with the broader trend. The rating agency also cut the Eurozone’s 2019 growth forecast from 1.7% to 1%.
Italy’s National Statistical Service (ISTAT) launched the new Social Mood on the Economy Index, which measures public support for the economic outlook. ISTAT noted that the mood was negative in the final part of 2018, matching the actual overall performance of the Italian economy, which dropped into recession in the second half of 2018.
European Commission Vice President for the Euro, Valdis Dombrovskis, told the European Parliament that a rise in Italy’s deficit had brought more instability.
“Raising the deficit instead of cutting it has led to an increase in instability, interest rates, and a lowering of confidence, It has had a negative impact on investments and, as a result, it is not surprising that the slowdown of the economy is the most accentuated of all and that growth is the slowest (in the EU).”