Economics
Italy Is Said to Cut Economic Growth Forecast to Just 0.1%
- Treasury seen raising projected budget deficit in outlook
- Populist government struggled to reach deal with EU last year
Downtown Milan.
Photographer: Miguel Medina/AFP via Getty Images
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The Italian Treasury is set to slash its growth forecast for this year and raise its projected budget deficit, according to two senior officials with knowledge of the draft outlook.
The economy will expand by just 0.1 percent this year, according to the draft, which is due for cabinet approval by April 10, the officials said. The government’s previous forecast was for a 1 percent expansion and the new prediction is in line with Bloomberg’s latest survey of economists.