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Italian govt sees no growth next year, confirms balanced budget

September 21, 2012 Ansa
The Italian government on Thursday said the economy would not pick up next year as it had foreseen in earlier forecasts this year.

It also confirmed a goal of a "structurally" balanced budget in 2013 - meaning a deficit of 0.5% of GDP - despite a worse-than-expected recession and the impact of unforeseen natural disasters like the devastating earthquakes that hit Emilia Romagna.

In the new forecasts, the economy will contract by 2.4% this year and 0.2% in 2013.

Forecasts from international organisations have been more pessimistic.