S&P raises Italy's outlook to 'positive' on reforms
Reuters
Published Oct 22, 2021 21:55
(Reuters) - Ratings agency S&P Global (NYSE:SPGI) on Friday raised Italy's outlook to "positive" from "stable", saying the government's commitment to pro-growth reforms would boost the economy.
The government in April presented to the European Union a plan that sets out infrastructure investments and reforms to raise Italy's growth potential and obtain more than 200 billion euros ($234.52 billion) of EU funds over the next six years.
"The Draghi government's large bicameral majorities should ensure the end 2021 implementation of the 51 milestones and targets included in its ambitious reform program," the ratings agency said in a statement.
The agency added that steps taken by the European Central Bank since the COVID-19 pandemic's start to ensure a unified monetary policy within the euro zone have also supported Italy's recovery.
A strong investment-led recovery in 2021 and 2022 should put the Italian gross domestic product above 2019 levels one year earlier than S&P had previously estimated, the ratings agency said.
The eight-month-old government forecasts the euro zone's third-largest economy will grow by 6% this year, following the record 8.9% contraction in 2020 caused by the pandemic.
S&P affirmed Italy's rating at "BBB/A-2".
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.