Bloomberg: Italy’s Budget Deficit Will Stay Higher Than Allowed Minimum Until 2026

According to Bloomberg, which cites sources, Italy’s budget deficit would remain above the EU’s permitted ceiling of 3% of GDP until at least 2026.

« It will take until at least 2026 for Italy’s budget deficit to fall below the European Union’s 3% limit… which could trigger greater scrutiny from the bloc’s fiscal watchdogs, » the agency writes.

According to Bloomberg, « the government of Prime Minister (of Italy) Giorgia Meloni will need several years to put finances back on a sustainable path. » In 2023, the nation’s budget deficit was 7.2% of GDP.

The agency claims that the Italian Finance Ministry is expected to declare on April 9th, when new economic targets and forecasts are unveiled, that it anticipates the country’s economy to grow by 1% this year, as opposed to the 0.6% predicted. According to Bloomberg’s sources, faster economic growth would contribute to bringing the budget deficit down to roughly 4.4% this year and below 4% the following year.

The national statistics agency Istat forecasted in March that Italy’s GDP will expand by 0.9% in 2023. Speaking of the data as of right now, Istat reported a 4% growth in 2022 but also a decline in the economy.

source: bloomberg.com

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