Italy - Financial Sector Assessment Program - Detailed Assessment of Observance of the IMF Code of Good Practices on Transparency in Monetary and Financial Policies - Payment Systems Oversight (Electronic book text)

1. The global financial crisis is taking a toll on Italy's economy, compounding its long-standing, home-grown, weaknesses. Output is projected to contract by about percent in 2008 and 1 percent in 2009, with risks tilted to the downside, linked to a further slowing of global growth and falling consumer confidence. Going forward, the economy's ability to rebound quickly is hampered by rigidities in product and labor markets, a lack of domestic competition, a likely slower pace of industrial restructuring, and weakness of the public finances.