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.
This Selected Issues paper for Italy presents updated estimates of potential growth for Italy, using new techniques that draw on co-movements of output, employment, and inflation over the business cycle to distinguish trends from cycles. The paper provides an assessment of an area-corporate governance-that has important implications not only for trend growth but also for macrofinancial developments. The paper reviews developments in fiscal federalism in Italy and draws on cross-country experience to offer suggestions on how the decentralization process now under way can be most effectively managed.