GDP rises, but the deficit also grows: this is a summary of the snapshot of the Italian economy forecast for 2017 in the Update Note of the Def (Economics and Finance Document) approved yesterday evening by the Council of Ministers and sent to Brussels.
In essence, the GDP is expected to grow from 0,7-0,8% this year (initially the government had forecast a +1,2%) to 1% in 2017. But the deficit: previously there was talk of 1,8% of GDP, while now a 2% is expected with an additional 0,4% slack (therefore up to 2,4%) due to the expenses for the earthquake and for migrants, considered by the Renzi government to be exceptional events and as such subject to greater budget flexibility in accordance with the provisions of the European Treaties.
But on this point a complex negotiation with the EU is still underway who will not be able to forget not only the Treaties but also the delicacy of the political moment that both Italy and Europe are experiencing and who will therefore presumably have an eye towards our public finances despite the recent frictions between Prime Minister Matteo Renzi and the trio Merkel, Hollande, Juncker. "Europe is gravely indebted to Italy on immigration", Renzi pointed out yesterday evening.
Lastly, the Def forecasts a slight decrease for 2017 by debt, which this year will rise from 132,2 to 132,8% to fall again to 132,2% over the next year.
