ITALIAN ECONOMIC OUTLOOK LESS BRIGHT, OECD SAYS
  Italy's economic outlook for 1987 and 1988
  is likely to be less favourable than last year with slightly
  lower growth, higher unemployment and an increased trade
  deficit, the Organisation for Economic Cooperation and
  Development (OECD) said.
      But the OECD, in its half-yearly report, forecast a
  slightly lower inflation rate over the next two years. Last
  year Italy ranked as one of the OECD's fastest growing
  economies with Gross Domestic Product (GDP) growth at 2.7 pct.
      The OECD said Italy's GDP may grow by three pct in 1987,
  but will then fall back to 2.5 pct in 1988.
      The inflation rate will probably stabilise at around five
  pct during the projection period as a result of a turnaround in
  import prices, particularly oil, an acceleration in labour
  costs and the effects of domestic demand pressure, the report
  said.
      This year, and to a lesser degree in 1988, domestic demand
  should be stimulated by buoyant growth in household consumption
  made possible by wage increases following pay negotiations.
      Domestic demand pressure, coupled with the deterioration in
  Italian competitiveness, is likely to stimulate imports and
  adversely affect exports in 1987 and 1988. This could result in
  a sharp negative contribution to the currrent account.
  

