Rome
Italy forecasts its debt to soar to a new post-war record level of 158.5% of gross domestic output (GDP) this year, surpassing the 155.6% goal it set in September, a government source told Reuters on Saturday.
The new estimate reflects the impact of a stimulus package worth 32 billion euros ($39 billion) announced this week, which will drive the 2021 budget deficit to 8.8% of national output, up from 7% previously targeted.
The extra spending will be used to help the hard-pressed national health service, fund grants and furlough schemes to businesses forced to close due to coronavirus lockdowns, and provide cover for a postponement of tax payment deadlines.
The government is due to update its debt and deficit targets in April.
Rome’s huge public debt is the second-highest in the eurozone after that of Greece.—Reuters
