By Liam Moloney 

ROME -- Economy Minister Pier Carlo Padoan said Italy's economy may grow less than expected as a result of Britons' vote on Thursday to exit the European Union, adding it could also hurt Italy's public finances.

"We have to be very clear: We can't exclude that as a consequence of Brexit, for factors beyond our control, the economic picture worsens and that we post lower growth," Mr. Padoan told Italian daily Corriere della Sera in an interview published Saturday. "This may also have consequences on public finances."

"I hope it doesn't happen, but it could," added the minister.

The government of Prime Minister Matteo Renzi estimates Italy's gross domestic product to rise 1.2% this year -- after emerging last year from its longest postwar recession. Italy's public debt is around 133% of GDP, making it the second-highest in the eurozone after Greece.

"The unthinkable is happening," Mr. Padoan told the newspaper, giving out a warning that the EU must change direction or risk disintegration after Thursday's U.K. referendum.

The other EU leaders needed to understand that there are now other priorities and that the bloc can't have common policies only for banking union but needs them also for immigration, security and in fighting inequality.

Write to Liam Moloney at liam.moloney@wsj.com

(END) Dow Jones Newswires

June 25, 2016 13:43 ET (17:43 GMT)