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.
The Selected Issues paper is focused on policies to secure strong growth and safeguard fiscal sustainability. The paper analyzes the reasons behind Italy's persistent inflation differential vis-a-vis the euro area. It reviews Italy's large regional imbalances through a catch-up in income levels and estimates a growth model using panel data for Italian regions to determine the impact of a number of factors in addition to convergence forces. It also focuses on fiscal sustainability and reviews the case for additional pension reform steps in Italy.