Italy’s Sovereign Debt Reaches New All-Time High
According to the country’s central bank, Italy’s public debt in July surpassed €2.77 trillion, setting a new record.
The Bank of Italy notes that the sovereign debt has increased by more than €2.5 billion and has now reached €2.7704 trillion compared to June of this year, when the previous negative record was established.
Local experts note that as a result of the COVID-19 pandemic, the size of Italy’s public debt in 2020 exceeded 155% of GDP. Last year the national economy resumed its growth due to the abolition of restrictions, and government spending to support businesses and citizens decreased. As a result, the national debt-to-GDP ratio dropped to 150.8%.
However, the situation in Ukraine and a sharp increase in energy prices again led to a decrease in GDP, which in the first quarter of this year decreased by 0.2%. Thus, Italy’s public debt growth resumed and once again reached record levels.