For Goldman Sachs, Italy’s GDP will drop by 11.6% in 2020

We are facing a frightening economic recession: Goldman Sachs updates the estimates on Italian and world GDP. Compared to a week ago, when it forecast -3.4% for Italy, this is basically a worsening: this year our economy will drop by 11.6%. Not only that, but we will have a sharp increase in the deficit, which will reach 10% of GDP, due to the urgent spending measures adopted to contain the health emergency and the impact of the economic crisis on businesses, workers and families.

Italy will be a black jersey in Europe: for Goldman, GDP in Spain will drop by 9.7%, Germany at -8.9%, France at -7.4%. The United Kingdom, on the other hand, would decrease by 7.5%. For the Eurozone as a whole, experts estimate a 9% drop in GDP. However, the analysis indicates a very significant recovery by 2021, when GDP will grow by 7.8%.

Godman Sachs also adds that the normalization of the business would be faster in Germany and France than in Italy and Spain because the former, in his view, announced significantly greater tax support for the economy, including unlimited loan guarantees .