Europe

Zero Growth from Energy Shock Says BoI-English

(ANSA)-Rome, June 10-If the Ukrainian war continues and Russia’s energy supply is cut off from the summer, Italy could see zero growth this year, the Bank of Italy said on Friday.

According to the central bank, in this worst-case scenario, negative growth of over 1% is expected next year, with growth returning to positive only in 2024.

Without such an energy shock, GDP growth this year would be 3%, down from the previous forecast of 3.8%, to 1.6% in 2023 and 1.8% in 2024.

BoI said inflation would rise to 6.7% this year, but risked reaching 8% in the worst-case scenario. (ANSA).

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