Xinhua English news | Xinhua, Latest News & Live Updates in English | English News (Latest English News) at Lokmattimes.com

Rome, April 13 Italy's debt and deficit levels are falling, according to new data from the Italian government and the International Monetary Fund (IMF). However, the two authorities hold differing views on the rate of change.The Italian government predicted this week that the country's public debt would fall to 142 per cent of its gross domestic product (GDP) this year, reports Xinhua news agency.Next year, it will decrease further to 141.2 per cent, before falling to 140.4 per cent in 2026, according to the government's budget outline.The IMF was more optimistic, predicting debt would be 140.3 per cent of GDP this year, 140 per cent next year, and 136.9 per cent in 2026.According to the Italian government, its budget deficit will be 4.5 percent of GDP this year, falling to 3.7 per cent, 3 per cent, and 2.5 per cent, respectively, over the next three years.These are the first full-year economic estimates released since the government of Prime Minister Giorgia Meloni came to power last October.Last year, Italy's public debt was 144.4 per cent of its GDP, and the government's budget deficit was 8 per cent of the size of the overall economy.Italy is one of the world's most indebted countries in terms of debt as a percentage of GDP.Both debt and deficit levels shot up during the Covid-19 pandemic due to a spike in government spending and a slowdown in economic activity, and a corresponding reduction in tax revenue.Italy's debt and deficit levels are both well above the guidelines given under the European Stability and Growth Pact, which limits debt to 60 per cent of GDP, and budget deficits to 3 per cent of GDP, in order to maintain the stability of the euro currency.However, the terms of the pact were temporarily relaxed during the pandemic.Italy has called for the pact to be updated, with Meloni stating last month it should be focused more on incentivising policies aimed at increasing economic growth, and less on macroeconomic data.This is expected to be a topic of conversation at next week's European Council budget committee preparatory meeting, and at the next European Council summit, scheduled to take place in June.Italy is also among the European Union member states calling for a reform of the European Stability Mechanism, established to boost stability in the euro zone by providing fiscal assistance to countries during economic crises.Italy was the largest beneficiary of the mechanism during the pandemic, receiving more than 200 billion euros in grants and loans which were paid out in tranches dependent on Italy reaching certain reform targets.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

XinhuaFOLLOW

Xinhua, Latest News

Jakarta, April 14 The Indonesian police's Densus 88 counterterrorism squad arrested four suspected terrorists linked to the Jemaah ... ...

Tunis, April 14 Tunisian National Guard has said that the number of bodies of illegal immigrants retrieved off ... ...

Ankara, April 14 At least 149 people have been detained in an anti-narcotics operation in the southern Gaziantep ... ...

Islamabad, April 14 Pakistani Prime Minister Shehbaz Sharif talked over the phone with Iranian President Ebrahim Raisi on ... ...

Yangon, April 14 Four people were killed and 11 others injured in a bomb blast in eastern Myanmar's ... ...

Ulan Bator, April 13 A strong wind and a heavy dust hit the southern Gobi provinces of Mongolia, ... ...

Wellington, April 13 Data released on Thursday confirmed a reduction in New Zealand's greenhouse gas emissions in 2021. ... ...

Rome, April 13 Italy's debt and deficit levels are falling, according to new data from the Italian government ... ...