“The social malaise that has been accumulated in this country, like in most other countries, is fostering populistic — kind of — political approaches in parties,” Passera said. He added that it was a “good piece of news” that the Italian economy has been growing but the rate is not enough to generate enough employment. “That’s the priority number one for the new government, no matter who wins the elections,” he said.
Meanwhile, UBS estimates the Italian economy grew 1.5 percent in 2017, supported by domestic demand and trade. It also predicts that its fiscal position has improved, in terms of both deficit and debt. Analysts at the bank, in a research note Tuesday, also said that growth was mostly due to cyclical reasons, but added that it has further room to run if Italian companies invest more. However, it warned that a “prolonged phase of political uncertainty could harm the recovery and undermine entrepreneurs’ animal spirits.”
