Wednesday, October 5, 2022
HomeEconomyItaly cuts 2023 economic growth forecast to just over 0.5%, sources said

Italy cuts 2023 economic growth forecast to just over 0.5%, sources said

Giuseppe Fonte

ROME (Reuters) – Mario Draghi’s outgoing Italian government is preparing to put his 2023 )’s growth forecast was cut to just over 0.5 percent as sources said the energy crisis weighed on the euro zone’s third-largest economy, with new economic forecasts due next week.

The Treasury Department forecasts gross domestic product (GDP) to grow by 3.3% or 3.4% this year, up from the 3.1% target set in April.

For 2023, the government expects GDP growth of 0.6-0.7%, well below the target of 2.4% a year earlier, two people familiar with the matter said on Friday, warning As the outlook becomes increasingly uncertain, estimates are still subject to change, it said.

Draghi has earmarked some 66 billion euros ($.$3 billion) in an attempt to mitigate the impact of soaring electricity and gas bills on companies and households.

His successor will emerge from the general election on Sunday and I may have to go the same way.

Italy plans to confirm its 2022 budget deficit target of 5.6 percent of national output set in April, Economy Minister Daniele Franco said last week. The weaker-than-expected growth will push next year’s fiscal shortfall above the previous target of 3.9%.

The forecast will be included in the Treasury Department’s Economic and Financial Document (DEF) to be released in September. .

In addition, they are based on unchanged policy scenarios, as Draghi leaves it to the next government to set more ambitious targets, before submitting them to EU authorities and the Italian Parliament 2023 before budget.

Italy should send its draft budget to Brussels for approval by mid-October, but sources say the time it takes to form a new government could mean a delay this year.

Nationalist Giorgia Meloni, the front-runner for Italy’s next prime minister, plans to

budget to boost growth, her economic adviser said.

In an interview with Reuters in August 27, Meloni said she would respect EU budget rules and would not The finances of opening a hole in the country.

With inflation nearing double digits, the European Central Bank raised interest rates sharply twice in July and September and pledged to do more to give Italy the chance to contain the threat of recession and reduce public debt. Strive to get complicated.

Retirement age is one of the main issues facing the new government in its first budget.

Temporary system that allows people to retire when they are 16 due this year, pension Age rises to 67 on January 1 Alliance leader Matteo Salvini, an ally of Meloni in the right-wing alliance, wants to abolish reform.

In a further challenge, Rome has to adjust pensions to consumer prices every year. In June last year, the Ministry of Finance said that the pension bill would rise from 16 to 16 of GDP next year .2%. .7% expected 2022 due to inflation. ($1=1.0269 EUR)

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