Italy’s Outgoing Government Sees Growth Slowing in 2023, Deficit Shrinking

  • Outgoing administration presented budget update late Wednesday
  • Growth seen weakening to 0.6% in 2023, a significant slowdown
Mario DraghiPhotographer: Alessia Pierdomenico/Bloomberg
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Prime Minister Mario Draghi is leaving Italy’s next government, likely led by Giorgia Meloni, a spending cushion of about €9 billion ($8.7 billion) to address the energy crisis.

New economic forecasts presented late Wednesday show better than-expected growth this year, with overall expansion of 3.3% predicted. That will allow Italy’s deficit to narrow to 5.1% of GDP in 2022 and then 3.4% in 2023.