20 June 2001, 12:52  ITALY CONFINDUSTRIA CUTS ITALY 2001 GDP TO +2.2% FROM +2.5%

GDP STRONGER IN 2002-3; NEW GOVT TO HELP
CONFINDUSTRIA RAISES ITALY 2001 CPI TO 2.8% FROM 2.2%
2001 DEF/GDP 1.5% VS 1.0% GOVT TARGET
CONFINDUSTRIA DOUBTS ITALY CAN MEET 2003 BALANCED BUDGET GOAL
BAD PUBLIC FINANCES MEANS HARD TO CUT TAXES SOON
CONFINDUSTRIA CUTS EMU 2001 GDP FCAST TO +2.3% FROM +2.9%
CONFINDUSTRIA SEES EMU 2002 GDP +2.6%, 2003 +2.9%
CONFINDUSTRIA RAISES EMU 2001 HICP TO 2.8% FROM 2.1%
CONFINDUSTRIA SEES EMU 2002 HICP AT 1.7%; 2003 1.3%
CONFINDUSTRIA CUTS AVG 2001 EURO-DLR TO $0.88 FROM $1.01
CONFINDUSTRIA:ECB TO STAY CAUTIOUS ON RATES;EYEING WAGES

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