"It is necessary to reform the pension system, particularly in order to reduce the pressure on spending from high pensions”. This is one of the key passages in the report on our country published today by the OECD, which points out that "Italy's economic activity has weathered recent crises well; however, it is now slowing amid tightening financial conditions. In order to ensure solid and sustainable growth in the long run, Italy should implement policies focused on strengthening the business environment and competition, consolidating public finances and promoting the green transition". The OECD Economic Study 2023 on Italy estimates economic growth of 0.7 percent for this year, respectively, after the 0.7 percent recorded in 2023 and the 1.2 percent projected for 2025. Overall inflation is expected to decline gradually from 5.9 percent in 2023 to 2.6 percent in 2024 and 2.3 percent in 2025, in line with core inflation, which is expected to reach 2.5 percent in 2025. Public investment has started to rebound and is expected to continue to support the economy over the next few years. Italy's public debt, at about 140 percent of its GDP, is the third highest in the OECD. Public spending resulting from aging-related costs and debt servicing as a percentage of GDP is expected to increase by about 4.5 percentage points over the period from 2023 to 2040.
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