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CERNOBBIO, Italy (Reuters) – Italy plans to confirm a projected 1% economic growth estimate for this year in its medium-term structural budget plan to be presented to the European Commission by Sept. 20, a Treasury junior minister said on Saturday.
“I believe 2024 estimates will be confirmed … with GDP growth of 1%,” Economy Ministry Undersecretary Federico Freni told reporters on the sidelines of TEHA business forum in Cernobbio.
Last April the Treasury forecast gross domestic product growth of 1.2% in 2025 in the euro zone’s third largest economy after 1% seen in 2024.
Freni gave no indication of how the Treasury sees the economic trend for the coming year.
The budget plan will also provide an updated framework for Italy’s strained public finances.
Rome was put under a so-called Excessive Deficit Procedure by the EU this year and the Treasury’s plan, which is aimed at cutting the fiscal gap in line with EU prescriptions, must also comply with the latest reform of the bloc’s fiscal rules.
The infringement procedure obliges Italy to cut its structural budget deficit net of one-off factors and business cycle fluctuations by 0.5% or 0.6% of GDP per year.
(Reporting by Elvira Pollina and Giuseppe Fonte; editing by Jason Neely)