Italy further increases budget deficit to support economy NOW

The Italian government has approved additional expenditure of EUR 25 billion in an effort to mitigate the economic damage caused by the corona virus. It is the third financial injection from the government since the outbreak of COVID-19.

The government agreed to the proposal late Wednesday evening. As a result, the budget deficit will continue to widen: expected to reach 11.9 percent of gross domestic product (GDP), against the target of 10.4 percent set in April.

In 2019, the deficit was still 1.6 percent, the lowest level in twelve years. The $ 25 billion pumped into the economy is partially borrowed. Public debt will rise to 157.6 percent of GDP this year.

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