The Italian Government is Posting a higher budget Deficit than Expected. The Italian government ran a budget deficit of 2.1 percent in 2018, the Italian statistics agency Istat reports Friday.
The government expected a deficit of 1.9 percent.
Furthermore, the government’s indebtedness increased to 132.1 percent of the economy.
The government figured on the increase in debt to 131.7 percent of the economy.
The economic increase was lower than expected with a meagre 0.9 percent.
In 2017 this figure was still 1.6 percent.
With lower economic growth and higher deficits,
it is becoming increasingly hard for the Italian government to bring down the relatively high debt burden.
Agreement on a budget in December
The government of the South European country reached a deal in December,
on the budget deficit for 2019 and the reduction of the national debt.
At the time, however, the expectations for the Italian economy were rosier than now.
The government thinks that the Italian economy is growing 1 percent this year,
while some economists even anticipate a contraction.