The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Italy has made impressive strides in achieving deep-rooted macroeconomic stability. But growth has disappointed over the past decade. The government has laid out a bold agenda to reinvigorate growth. Specifics of an expenditure and tax reform agenda should be laid out early. A key to achieving more dynamic growth is to tackle the root causes of Italy's large regional imbalances and labor market weakness. Although the liberalization of product markets has been advancing, major scope remains to promote competition and efficiency.