Italy to Confirm 1% Economic Growth Estimate in Upcoming Budget Plan
CERNOBBIO, Italy - Italy is set to confirm its projected 1% economic growth estimate for this year in its medium-term structural budget plan, which will be presented to the European Commission by Sept. 20. Economy Ministry Undersecretary Federico Freni announced this news at the TEHA business forum in Cernobbio.
The Treasury had previously forecast a GDP growth of 1.2% in 2025 for the euro zone's third-largest economy, following a 1% growth in 2024. However, Freni did not provide any insights on the economic trend for the upcoming year.
In addition to economic growth projections, the budget plan will outline an updated framework for Italy's strained public finances. Rome was placed under an Excessive Deficit Procedure by the EU this year, and the Treasury's plan aims to reduce the fiscal gap in line with EU guidelines, including the latest reform of the bloc's fiscal rules.
As part of the infringement procedure, Italy is required to decrease its structural budget deficit, accounting for one-off factors and business cycle fluctuations, by 0.5% to 0.6% of GDP annually.
In conclusion, Italy's confirmation of a 1% economic growth estimate for this year signals stability and potential growth for the country's economy. The upcoming budget plan will provide clarity on the government's fiscal policies and could impact financial markets, investment opportunities, and overall economic outlook for Italy and the Eurozone. It is important for investors and individuals to stay informed about these developments to make well-informed decisions about their finances.