ITALY has made considerable progress in strengthening its public finances and adopting wide-ranging reforms to boost economic growth. The new government must build on past achievements and ensure that they are sustained and reinforced, says a Economic Survey of Italy 2013.

The latest Economic Survey of Italy says implementation of the key 2012 reforms aimed at improving the dynamism of labour and product markets must be implemented effectively. This will improve Italy’s persistently weak productivity and boost the country’s international competitiveness, the report says.

Poor competitiveness, a drop in bank lending and the immediate impact of public spending cuts and tax rises on households and businesses continue to undermine growth in the short term. The report forecasts GDP to fall by 1.5% this year before inching up by 0.5% in 2014.

Presenting the report in Rome, OECD Secretary-General Angel Gurría said: “Amid recession and rising unemployment it is sometimes difficult to see light at the end of the tunnel. But I am convinced that a commitment to the current reform strategy will result in better living standards and a stronger, more dynamic Italian economy.”