ROME, March 28 Italy's economy could contract by
more than expected this year and the country needs credible
economic policies to halt its long recession, the central bank
said on Thursday.
Bank of Italy official Daniele Franco told parliament that
the government's forecast of a 1.3 percent fall in gross
domestic product this year could be in doubt if market tensions
worsen or a global economic recovery is delayed.
"We need effective and credible economic policies to
interrupt the recessionary spiral," he said.
Italy has been in recession since the middle of 2011.
Attempts by political parties to form a new government have been
deadlocked since last month's inconclusive election.