The Italian government published on Tuesday morning an update of the macroeconomic projections for 2020 and 2021 and estimates that next year the growth of the economy will be 6%, the deficit of 7% of the Gross Domestic Product and the debt of 155.6% of GDP, EFE reports.
The Italian executive confirmed the estimates advanced last week for 2020: the economy will shrink by 9%, the deficit will stand at 10.8% of GDP and the debt at 158% of GDP.
Authorities expect growth to be 3.8% in 2022 and 2.5% in 2023, while the budget deficit will be 4.7% of GDP in 2022 and 3% in 2023.
Italy is committed to gradually reducing its debt to ”bring it back to pre-coronavirus levels” by the end of the decade. Currently, it is estimated at 154.3% of GDP in 2022 and 154.1% in 2023.
Italy must send the draft budget and reform plan to the European Commission by mid-October.
In the short term, measures are being considered to support employees and the productive sectors affected by the coronavirus pandemic, but will also include ”deep and high-impact investments and reforms”, such as ”a comprehensive fiscal reform that improves equity, efficiency and the transparency of the tax system”, to reduce the tax burden on families and to fight against evasion.
There will be aid for families with children, support for digitalisation and infrastructure, all this ”at the same time as the constant reduction of public debt”.