Goldman Sachs has accused Italy of ‘casting a dark cloud’ over the European market outlook.
It isn’t a secret. Italy has gone head to head with the European Commission over Italy’s 2019 budget.
The Commissioner and Prime Minister Conte and Deputy Prime Minister Salvini locking horns, neither side willing to change ‘one comma’. It is a case of globalists versus populists.
So bring in the globalists. Goldman Sachs.
The Goldman Sachs report asserts that Italy risks recession early in 2019 with financial markets forcing the government to change its economic policy claiming it is “more likely that the pressure of the markets catalyses a return to budget discipline”.
Their report on global growth is entitled ‘Landing the Plane’, says ”Italy is casting a dark cloud” claiming that Italy was one of the risk factors which could entangle the prospects for the European market next year, adding that “things could get worse before an improvement is seen”.
The report makes the claim that a dispute with the European Commission being left “unresolved” could mean the economy in Italy would “flirt with recession at the start of next year”.
As well, despite a consensus among analysts predicting a growth of 1 per cent, Goldman Sachs forecast the GDP growth would only be 0.4 per cent and said it was “skeptical” about Brussels or Rome being able to “change direction” in their budget negotiations.
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