Reuters exclusively reports Italy expects 2021 deficit to be below 10% of national output

Reuters exclusively reported that Italy’s Treasury sees the 2021 budget deficit coming in at under 10% of national output, well below the 11.8% target set in April, as the economy recovers more quickly than expected from the pandemic. In its latest forecasts issued in April, the Treasury estimated gross domestic product would grow by 4.5% following the record contraction of 8.9% in 2020, when protracted COVID-19 lockdowns hammered the economy. However, recent data has been stronger than expected and Economy Minister Daniele Franco said on Sunday that growth of more than 5.8% now looked possible, with a positive impact on public finances.