Italy econ minister says avoiding COVID lockdown is "absolute priority"

Italian Economy Minister Roberto Gualtieri said on Friday it was the government's "absolute priority" to avoid a national coronavirus lockdown which would derail the strong economic recovery seen in the third quarter.

Italian Economy Minister Roberto Gualtieri said on Friday it was the government's "absolute priority" to avoid a national coronavirus lockdown which would derail the strong economic recovery seen in the third quarter. Gualtieri said in a speech to bankers in Rome that the rebound of 16.1% in gross domestic product between July and September meant even if there is a contraction in the fourth quarter Italy will meet its full year GDP forecast of -9%.

"It is the government's absolute priority to contain coronavirus infections so as to avoid a general lockdown," Gualtieri said. He added that the government would extend a moratorium on small and medium-sized companies' loan repayments to banks, and was ready to adopt further economic stimulus measures if necessary.

Like much of Europe, Italy is reeling from a second wave of the coronavirus and on Thursday it registered a new record of almost 27,000 new infections. The country has seen more than 28,000 COVID-related deaths since its outbreak came to light in late February, the second highest toll in Europe after Britain's.

Gualtieri said the risk of a renewed economic slowdown in the fourth quarter meant 2021 GDP growth may come in below Rome's 6% target, but in this case "the recovery would only be delayed."