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Italy’s Deficit May Be Close to 10% in Second Year of Crisis

  • Public debt ratio may now reach towards 159% of output
  • Draghi will present new public finance targets in mid-April
Mario Draghi
Mario DraghiPhotographer: Alessia Pierdomenico/Bloomberg

Italy’s budget deficit is likely to be close to 10% of gross domestic product for a second year as successive lockdowns force the country to boost spending, according to people with knowledge of the matter.

Such a projection may feature in Prime Minister Mario Draghi’s new public-finance targets in mid-April, which will also include a higher debt tally for 2021, pushing towards 159% of output, said the people, who declined to be identified discussing undisclosed government forecasts. The figures aren’t final and could still change before they’re unveiled.