Italy posted a 5.2% deficit in the fourth quarter of 2020


The Italian National Institute of Statistics announced that Italy’s budget balance has shifted to recording a deficit of 5.2% of GDP in the last quarter of last year, compared to a surplus of 1.9% in the same period of 2019.

The institute stated that over the entire year, the deficit recorded 9.5% of GDP, confirming data for the full year of 2020 issued last month. This comes compared to only 1.6 percent in 2019, before the Covid-19 pandemic hit the country.

The institute said that the deterioration of public balances in the fourth quarter was due to a jump in government spending and lower revenues associated with the pandemic.

This year, official estimates for Rome expect the deficit to drop slightly to 8.8 percent of GDP, but government sources say this will be revised upwards this month to take into account additional spending to support the economy affected by existing restrictions to combat the spread of the Corona virus.

(Source: cnbcarabia)


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