ROME May 6 Italy's economy will contract by 1.4
percent this year and post a timid recovery in 2014, national
statistics institute ISTAT forecast on Monday.
ISTAT's latest forecast for 2013 marked a sharp downward
revision from a previous projection of -0.5 percent made in
November, reflecting the continued weakness of domestic demand
as Italy languishes in its longest recession for 20 years.
In 2014 the euro zone's third-largest economy will grow 0.7
percent, ISTAT said, but unemployment will continue to rise to
12.3 percent from a projected 11.9 percent this year.
ISTAT's GDP forecasts are less upbeat than those of the
government, which sees a contraction of 1.3 percent this year
and growth of 1.3 percent in 2014.