global economy

Italy sees sharp growth, large budget deficit

Agence France-Presse

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Italy sees sharp growth, large budget deficit

A view shows a canal in Murano, Italy, on September 8, 2020. - Murano's world-famous production is highlighted by the multitude of souvenir stores lining the alleys of Venice, but sadly "70% of glass objects are not produced in Venice," says Luciano Gambaro, president of the Association for the Promotion of Murano Glass. (Photo by Tiziana FABI / AFP)


The government says Italy should see the economy grow a sharp 6% in 2021, helped by a more than 200-billion-euro aid package

Italy, among the countries worst hit by the coronavirus pandemic, expects to run a large budget deficit this year but it will help fund strong growth in 2021, the government’s outlook showed Tuesday, October 6.

This year’s budget deficit, the shortfall between government revenues and spending, will come in at 10.8% of gross domestic product (GDP), falling to 7% next year.

Prime Minister Giuseppe Conte’s Cabinet signed off on the budget outlook in the early hours of Tuesday.

Having suffered nearly 36,000 coronavirus deaths, Italy should see the economy grow a sharp 6% in 2021, helped by a more than 200-billion-euro European Union-backed aid package, it said.

Growth in 2022 will ease back to 3.8%, followed by 2.5% in 2023, it added.

Bank Intesa Sanpaolo said in a note there had to be doubts about such “optimistic” figures.

The government has unveiled plans for a massive modernization program to put the economy on a firm foundation after years of languishing in the doldrums, made worse by the near-complete shutdown during the worst of the coronavirus outbreak earlier this year.

Conte says some 37% of the funds will go into Green projects, as sought by Brussels, to pave the way for a more sustainable economy less dependent on traditional fossil energy sources. –

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Download the Rappler App!