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The Bank of Italy on Friday projected that Italy's economic growth is set to slow to 0.1 percent this year from 0.7 percent in 2018. The economy grew 0.1 percent in the first quarter after contracting 0.1 percent in the final three months of 2018. The pace of growth was projected to improve to 0.8 percent next year and to 1 percent in 2021. The projections assume a scenario of weaker world trade, persisting trade tensions, a very accommodative monetary stance, as signaled by the European Central Bank, and sovereign spreads that are still high, the bank said in its latest Economic Bulletin, released Friday. The outlook reflects a slowdown in investment and exports, the report said. Economic activity is forecast to gradually recover in the second half of the year, led by household spending and exports.