Company News

Italy sees GDP rising 5.1% in 2021 - sources

ROME, Sept 21 (Reuters) - Italy expects its coronavirus-hit economy to rebound by 5.1% next year after contracting by 9% in 2020, two sources close to the matter told Reuters on Monday.

In April, the government of the anti-establishment 5-Star Movement and the centre-left PD party forecast a fall in gross domestic product of 8% this year and a 2021 rise of 4.7%.

The new forecasts drawn up by the Treasury are based on an unchanged policy scenario and the 2021 projection does not incorporate planned expansionary measures to be financed next year by the European Union’s Recovery Fund, the sources said.

This implies that the government’s definitive growth target for 2021 will be more ambitious.

The euro zone’s third largest economy has never posted annual growth of 5% in the last 40 years.

The government will publish new GDP, deficit and debt targets early next week, Economy Minister Roberto Gualtieri said on Sunday, providing the framework for the 2021 budget which must be presented to the European Commission in mid-October. (Reporting by Giuseppe Fonte, editing by Gavin Jones)