Eventually the spread bill arrived. In the first quarter of this year, Italy's deficit-to-GDP ratio rose to 8% (raw data) from 7% recorded in the same period of 2011. It is the worst figure since the first quarter of 2009, when the ratio was 9,5%. This was communicated by Istat, explaining that they weighed on the results of the first three months of 2012 "the increase in interest expenditure", linked to the "rise in 2011 in yields on government bonds", and the drop in revenues "caused by the negative trend of the economy".
The primary balance (debt net of interest expense) was negative and equal to 11,471 billion euro. The impact on GDP was -3% compared to -2,7% in the first quarter of 2011: in this case it is the worst figure since the first quarter of 2010.
The current balance (savings), on the other hand, was negative by 21.952 million euros (it was at -17.120 million euros in the same period last year), with an impact on GDP of -5,8% against a value of -4,5% recorded in the first quarter of 2011.
In detail, between January and March, interest expenditure rose by 16% on an annual basis. Total outflows increased, in trend terms, by 1,3%. Current outflows increased by 2,6%, while capital account outflows decreased by 19,9%. On the other hand, revenues decreased by 1% and their incidence on the GDP was equal to 41,3%, a slight decrease compared to the 41,6% of the first three months of 2011.
