The gross domestic product of the Italian economy is expected to increase by six percent this year. This is a better outlook than expected for the third most populous country in the European Union this spring. The general government deficit will also decrease.
At the same time, the Italian government predicted economic growth for this year at the level of 4.5 percent. The general government deficit is expected to reach 9.5 percent of GDP this year, with an estimate of less than 12 percent of GDP in April. The improvement in the economic outlook of the European Union‘s third most populous country is due to the earlier easing of epidemic measures than originally planned.
The Organization for Economic Co-operation and Development is similarly optimistic. In its September forecast, Italy predicts an increase in economic output of 5.9 percent this year, and is expected to increase by 4.1 percent next year. According to the OECD, the economic deficit of Italian government institutions is expected to reach 10.6 percent of GDP this year and 5.7 percent next year.
The International Monetary Fund has not yet updated its forecast, but in April Italy saw a general government deficit of 8.8 percent of GDP and economic growth of 4.2 percent.
