Fitch confirms Italy rating at ‘BBB-‘, stable outlook

Fitch Ratings confirmed Italy’s rating at ‘BBB- with a stable outlook. This was announced by the international rating agency. The pandemic, the agency underlines, “continues to have a significant negative impact on the Italian economy and public finances”. The rating, Fitch notes, “is affected by a very high public debt and structurally weak economic growth. The rating is supported by the fact that Italy has a diversified and high value-added economy and by belonging to the Eurozone, by GDP per capita, moderate indebtedness in the private sector and a surplus on current account “. Furthermore, Italy “also benefits from ECB programs”. The Covid-19 pandemic, notes Fitch, “proved to be a prolonged shock for the Italian economy and public finances and similar to many European countries. The acceleration of the vaccination program, the sharp decline in new Covid cases -19, together with the reopening of the vast majority of economic activities in May, pave the way for a rapid recovery in economic activity in the second half of 2021 “. Italy, underlines the rating agency,” will also benefit from the stimulus to investments provided by the funds of the Next Generation Eu (NGEU) “. Achieving lasting growth effects through the NGEU “will depend on Italy’s ability to use funds effectively and the government’s ability to implement targeted reforms.” Fitch expects GDP growth of 4.8% in 2021, driven by a strong rebound in the second quarter of the year and 4.3% in 2022.