Italy says 2013 recession to be deeper than thought

Reuters

ROME (Reuters) - Italy has cut its 2013 gross domestic product forecast to -1.8 percent from -1.7 percent, its economy minister said on Tuesday, adding that a predicted recovery next year would be stronger than expected.

Fabrizio Saccomanni told a Senate committee the economy would grow 1.1 percent in 2014, rather than 1.0 percent as previously forecasted, as he presented a budget aimed to address Italy's longest post war recession.

Earlier on Tuesday the Bank of Italy, also giving parliamentary testimony on the budget, said growth next year would be 0.7 percent, while the average forecast of 20 economists polled by Reuters this month pointed to just 0.5 percent.

(Reporting by Giuseppe Fonte, writing by Naomi O'Leary)

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