Economics
Italian Deficit May Reach 9.2% This Year as Covid Costs Pile Up
- Vaccination delays likely mean more stimulus will be needed
- Official sees deficit at 9.2%, debt at 158.5% in worst case
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The Italian Treasury is starting to factor in a bigger hit to the country’s battered public finances this year as another extended lockdown holds back the recovery, a senior government official said.
Treasury models suggest the budget deficit may reach as much as 9.2% of output this year, the official said. The government is also looking at a deteriorating outlook for growth and could see the economy expand as little as 4.5% in its worst-case scenario, according to the official.