Italy's national unemployment rate will rise in 2010, according to forecasts made by the Organization for Economic Cooperation and Development (OECD).

The Paris-based international agency predicted that the European Union member's jobless rate will increase to 7.6 per cent by the end of 2009, before rising to 8.5 per cent next year and then peaking at 8.7 per cent in 2011.

The OECD's twice-yearly Economic Outlook report also suggested that Italy's gross domestic product will increase by 1.1 per cent in 2010, which is above the average for the 16-nation eurozone at 0.9 per cent.

The OECD report said that Italy had now overcome the severe recession that has plagued the economy for the past two years.

"Improved financial conditions have helped rebuild confidence and bolster demand. Further support to exports will come from the recovery in world trade," the report said.

Last week, the OECD also predicted that the economic recovery now occurring across its 30 member states is "too timid to halt the continuing rise in unemployment".