Breaking news Italy Cuts Growth Forecasts For 2024-25, Citing Shaky International Outlook Lastminute news

Government forced to revise down its economic targets in light of ongoing conflicts, minister says.

The Italian government on Tuesday cut its growth forecast for this year and the next, citing a shaky international outlook and predicting that public debt was also set to rise.

Italian Economy Minister Giancarlo Giorgetti unveiled the Economic and Financial Document (DEF) and said Italy's gross domestic product (GDP) is expected to grow by 1% this year, down from a previous 1.2% target.

The government expects an economic growth of 1.2% for next year, also down from the previous 1.4% forecast.

Giorgetti told reporters that the downward revisions were due to "a complicated international and geopolitical framework," citing the ongoing conflicts in Ukraine and the Middle East.

The Italian government, headed by Prime Minister Giorgia Meloni, however, confirmed its closely watched 2024 budget deficit forecast at 4.3% of national output.

For 2025, the ministry raised its deficit projection to 3.7% from a previous 3.6% target.

Italy's public debt, the second largest in the eurozone, will see a rising trend through 2026, according to the government's latest forecasts.

Giorgetti said this was due to the "devastating impact" of the so-called Superbonus, which allows Italian homeowners to reclaim from their taxes 110% of the cost of energy-saving building works.

The minister noted that the measure – approved by previous governments – will continue to weigh on the Italian debt despite curbs on the incentives.

Italy's debt is estimated to reach 137.8% of gross domestic product this year, up from the 137.3% reported in 2023. It will further rise to 138.9% in 2025 and to 139.8% in 2026. -
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