It’s widely reported today that Italy is going to cut 2019 growth forecast within this month. The government previously projected 1% growth this year and agreed to 2.04% budget deficit to GDP with EU.
Reuters said Italy will lower GDP growth forecast to just 0.3-0.4%. Bloomberg went further and said it could be revised down to just 0.1%. The budget deficit target, could then be raised up to 2.3-2.4% of GDP.
The final numbers will be approved by the Cabinet next week. But based on current situation, another clash with EU seems inevitable.
