Italy Central Bank expects 1.5 pct GDP contraction

MILAN (AP) ? Bank of Italy chief Ignazio Visco says the country's economic contraction can be contained to 1.5 percent this year.

Visco said in the annual address to shareholders in Rome on Thursday that the economy could show some signs of recovery toward the end of the year depending on the effectiveness of structural reforms, better use of public resources and greater European cohesion in attacking the financial crisis.

Visco underlined that unemployment in Italy has risen to 10 percent in March from 8 percent last July, while the rate among people aged under 25 rose to 36 percent from 28 percent.

The government expects the economy to contract by 1.2 percent this year.

Associated Press

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