Italy sees above 5.8% economic growth this year
Italy’s economy was expected to expand more than 5.8% this year with better-than-calculated deficit and debt ratios, according to Economy Minister Daniele Franco.
Italy’s parliamentary budget watchdog (UPB) projected the economy to grow 5.8% in 2021. It was an improvement from April’s forecast of 4.5% growth this year and 4.8% in 2022.
The country’s deficit-to-GDP and debt-to-GDP ratios were expected to beat estimates at the end of this year.
Rome targeted an 11.08% fiscal gap in GDP in April, while its debt-to-GDP ratio was projected to climb to 159.8%.
Franco said that while the recovery is quick, achieving stronger structural growth remains the most important. He said the 2022 budget would remain expansionary in order to aid recovery from the pandemic.
In a planned fiscal adjustment that could receive cabinet approval this month, the government intends to slash both income tax and tax wedge to help bolster Italy’s typical sluggish growth.