Italian Parliament’s Budget Office Cuts 2024 Growth Forecast
(Bloomberg) -- Italy’s economy will probably grow less than previously forecast this year due to weak manufacturing and a clouded outlook for construction, according to the country’s parliamentary budget office.
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The economy will grow just 0.8% instead of the previously forecast 1%, according to a report published on Wednesday. “Risks to forecasts are overall oriented to the downside,” officials wrote.
The lower outlook chimes with the views of both Finance Minister Giancarlo Giorgetti and the Bank of Italy. Both have recently said that gross domestic product will probably grow less than previously expected in 2024.
The country’s national statistics institute is scheduled to release gross domestic product data for the third quarter next week which will give a better idea of how the economy is faring. On Tuesday, the International Monetary Fund forecast growth of 0.7% this year.
Italy’s fiscal plan announced last month was based on an economic output estimate of 1%, and slower growth may make it more difficult to reach Giorgetti’s declared deficit and debt targets.
The nation has been placed into a so-called excessive deficit procedure by the European Union, and has promised to bring its deficit under the bloc’s 3% limit by 2026 and to start decreasing its debt starting in 2027.
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