Italy's Economic Growth Revised Down for 2023, Easing Pressure on Prime Minister - ISTAT Report
In a recent report by national statistics bureau ISTAT, Italy's economic growth for last year was weaker than previously estimated. However, on a positive note, the budget deficit and public debt as a proportion of output were revised down. These revisions come as a relief for Prime Minister Giorgia Meloni as she prepares a 2025 budget that aims to cut the deficit significantly to meet the country's commitments to the European Union.
The revised numbers suggest that a projected increase in the debt-to-GDP ratio over the next few years can now be avoided. According to a government official, the 2023 budget deficit has been slightly revised down to 7.2% of GDP from the previous estimate of 7.4%.
Italy, which was put under an Excessive Deficit Procedure by the EU in June, has targeted a reduction in the deficit to 4.3% of GDP this year, with further declines to 3.6% in 2025 and 2.9% in the following year. The public debt for 2023 has also been revised down to 134.6% of GDP from 137.3%.
The revisions were part of the annual review of Italy's GDP statistics, with a change in the base year for GDP growth data to 2021. Despite the downward revision in the growth rate for 2023, the GDP level was raised to 2.13 trillion euros.
Overall, these revisions show positive signs for Italy's economy, with higher GDP levels and lower deficits and debts. This could have a significant impact on the country's public finances and its standing in the euro zone. With the Italian Treasury set to finalize a multi-year budget plan, these revised numbers will play a crucial role in shaping the country's financial future.