Tuesday, economic think tank REF said Italy's economy is likely to contract 4% in 2009, severe than a 2.5% contraction forecast earlier. REF forecasts another 0.5% fall in GDP in 2010. That was revised from a 0.1% decline initially predicted.

The number of unemployed is expected to increase 700,000 this year and the coming year. The country's budget deficit is expected to account for 4.3% of GDP.

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