ROME - Italy's economy is likely to contract in the fourth quarter and recovery next year is expected to be slower than initially forecast, the Bank of Italy said during a parliamentary briefing on Tuesday.
"In any case, it is likely that the result for the year will be in line with what was forecast in October," the central bank said in a speech before the government's budget committees.
"However, in 2021 the recovery will likely be slower than expected."
In October the Bank of Italy estimated a GDP contraction of less than 10% in 2020. The Italian government's official forecasts are for a GDP drop of 9% this year and growth of 6% in 2021.
(Reporting by Giuseppe Fonte, writing by Agnieszka Flak; editing by Gavin Jones) ((email@example.com; +39 02 6612 9450; Reuters Messaging: firstname.lastname@example.org))