ROME (Reuters) - Italian employers group Confindustria raised its forecasts for economic growth on Wednesday, but warned a fragile recovery could be threatened by political instability.
Confindustria raised its forecast for full-year GDP growth in 2016 to 0.9 percent versus a 0.7 percent forecast made in September, but said the estimates did not take into account a government crisis caused by the resignation of Prime Minister Matteo Renzi.
"Political uncertainty represents a significant risk to the downside," Confindustria said in the report, adding that instability "would weaken ... incentives to invest."
Italy's government, now led by former Foreign Minister Paolo Gentiloni, forecasts 0.8 percent growth in 2016.