"We'll have to go through deep changes — not only [in] my country but also many countries to really face an increase in competition worldwide," he said.

"We have to keep pushing and keep progressing in our restructuring of the Italian economy," he added. He added that he realizes Italy needs "to convince the markets now that we are making good process and we are achieving results."

Italy's economy has contracted 2.4 percent year-on-year, according to gross domestic product (GDP) data released on Thursday, a sign that the country is still constrained by rigid labor markets and other inefficiencies that have stymied its competitiveness.

However, it fell less than expected in the third quarter, falling 0.2 percent compared to a forecast of 0.5 percent, leading some economists to hope that the country's economy had not shrunk as much as feared in 2012.

(Read More: Euro Zone in Recession)

This was the fifth quarterly decline in growth in a row, as the country tries to bring down its public debt of 126 percent of GDP to 114.4 percent by 2015.

There are concerns that forthcoming general elections could upset the reform program enacted by caretaker Prime Minister Mario Monti, as voter apathy, public anger at austerity measures and political infighting pervade Italian society and politics.

Grilli remained optimistic that both Italy and the euro zone would emerge from the economic crisis. He forecast that Italy would have flat growth next year, before returning to growth in the second quarter of 2014.

"We are sure that with our reform program have introduced in our economy major…output has already switched gear, but [it] will take some time before we really see it [growth]," he said.

All Roads Lead to Rome

Grilli insisted that Italy's economy was competitive and well-positioned to weather the economic storm hitting the euro zone, a region shown to be in its second recession since 2009 according to gross domestic product data released on Thursday.

"Our economic structure is very, very strong and [has] many, many dimensions," Grilli said.