In its half-yearly stability assessment, Italy's central bank said the country's accumulated debt posed a continuing risk to the country and its financial system, especially in the face of poor economic performance.
Just weeks after the government released a new forecast for an increase in borrowing, officials saw the outlook for public finances as "a risk factor". This is arguably tougher than the language they used in two financial stability reports last year.
"persistently high debt levels remain a risk factor, especially if the economic trend is not as expected," the Bank of Italy (Bank of Italy) said in an analysis released in Rome on Tuesday.
Under the leadership of Prime Minister Giorgia Meloni Merloni, the country is implementing a wide range of fiscal tightening policies to relax without upsetting investors.OnlineslotswelcomebonusSome policies have been made. After a surge in debt to finance epidemic policy and energy support, borrowing last year was still well below expectations, leaving debt at 137 per cent of GDP.
According to a forecast released by the government this month, this number is now expected to rise again and reach 139% of output by 2026.OnlineslotswelcomebonusA peak of .8%. The International Monetary Fund (International Monetary Fund) is less optimistic, with the ratio expected to exceed 140 per cent as early as next year and climb to nearly 145 per cent by 2029.
