Moody's reduces Italy's 2014 GDP forecast to -0.1%

FXStreet (Łódź) - Following the release of preliminary Q2 GDP data for Italy last week, showing a 0.3% contraction against expectations of a 0.1% rise, Moody's Investor Service published a report in which it downgraded its growth outlook for the country.

Currently the ratings agency expects the Italian economy to contract by 0.1% in 2014. It also sees the debt-to-GDP ratio at 2.7% this and next year, with a high possibility of an upward revision.

Moody's credit rating for Italy stands at Baa2, with a stable outlook.