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Govt OK's 40bn move in DEF, goal is growth says Draghi

Govt OK's 40bn move in DEF, goal is growth says Draghi

2021 GDP growth 4.5%, deficit under 3% by 2025

ROME, 16 April 2021, 12:21

Redazione ANSA

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Draghi © ANSA/EPA

Draghi © ANSA/EPA
Draghi © ANSA/EPA

Italy's GDP will rise by a projected 4.5% this year, according to the DEF economic and financial blueprint approved by the government, premier's office sources said Thursday.
    This will be followed by 4.8% growth in 2022, 2.6% in 2023 and 1.8% in 2024, the DEF says, "unprecedented levels of growth in the last decade".

Premier Mario Draghi told his cabinet that the goal was growth and there would soon be expansionary measures, according to those present.
    The DEF will also include a 40 billion euro budget adjustment, the latest to fund COVID relief and boost firms, including 30 billion for investments.
    The 40 billion variation, coupled with a previous 32 billion adjustment, will push the budget deficit out to 11.8% of GDP this year, premier's office source said after the approval of the document, stressing that this "very high level is due to the measures of support for the economy and the fall in GDP".
    The deficit will then fall to 5.9% in 2022, 4.3% in 2023 and 3.4% in 2024, while the deficit will start heading back below 3% from 2025 on, the premier's office sources said.
    The public debt, meanwhile, will rise to 159.8% of GDP, to fall to 156.3% in 2022, 155% in 2023 and 152.7% in 2024, premier's office sources said after the cabinet meeting that OK'd the DEF.
    Italy's economy is set to rebound this year from an unprecedented peacetime recession last year due to COVID-19.
   
   

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