Italy sees debt ‘surely’ staying below 140% of GDP this year

Newswire

Rome: Italy’s government expects debt this year to “surely” stay below 140% of gross domestic product.

Speaking to reporters on the sidelines of the Ambrosetti Workshop in Cernobbio, Italy, Finance Ministry undersecretary Federico Freni said the country’s expected growth will be “around 1%” in 2024.

Last Friday, the Bank of Italy said the country’s economy will grow just 0.6% this year, maintaining a forecast that clashes with the government’s much rosier prediction. The government will announce new forecasts for the economy next week.

Prime Minister Giorgia Meloni’s government is counting on consumer spending and stimulus from the European Union’s (EU) Recovery Fund to boost growth.

But it will take until at least 2026 to get its budget deficit below the EU’s 3% limit, people familiar with the matter have said.

Freni also reiterated a privatisation of some listed companies in which Italy holds stakes won’t be “rushed out,” being part of a €20bil (US$21.7bil) three-year plan that includes lender Monte dei Paschi di Siena SpA and postal operator Poste Italiane SpA.

In January, Italian government approved a plan to sell part of the stake held by the Finance Ministry.