Italy expects its public debt to increase until 2026 and hopes to start reducing it from 2027, according to the forecasts of a medium-term budget plan which foresees a growth rate of primary expenditure of around 1, 5% over the next 7 years.
As reported this Saturday by the Ministry of the Economy, the Structural Budget Plan “has a responsible and consistent line with the actions of the Government”and aims to “reduce the deficit/GDP ratio to 3.3% in 2025 and 2.8% in 2026, which will make it possible to exit the excessive deficit procedure”.
The debt for 2024 is estimated at 135.8% of GDP, one percentage point more than in 2023. Expected to reach 136.9% in 2025 and up to 137.8% in 2026, before decreasing slightly to 137.5% in 2027.
This is due to the additional costs of the housing renovation aid plan, known as “Superbonus”, which the country implemented during the years of the coronavirus pandemic.
Italy, the EU’s third largest economy, has high debt, the second highest in the eurozone as a percentage of GDP.
The financial plan was presented yesterday, Friday, before the Council of Ministers by the head of Economy, Giancarlo Giorgetti, and will be presented to Parliament for final approval.
It was prepared based on the latest economic data from the Italian National Institute of Statistics (Istat) for September and after consultations with the social partners.
“The plan confirms the trajectory of net primary expenditure for the next seven years, with an average growth rate close to 1.5%”, underlines Economía.
According to the ministry, “the expected growth rates of net primary expenditure are: 1.3% in 2025, 1.6% in 2026, 1.9% in 2027, 1.7% in 2028, 1.5% in 2029, 1.1% in 2030 and 1.2% in 2031. “.
The plan is posted online”with the government’s determination to improve the competitiveness of the Italian economy, promote sustainable growth and combat demographic decline”, and plans to “intensify efforts to recover tax revenues”, concludes Economía.
