Italy govt to cut 2007, 2008 GDP growth forecasts; hike deficit targets

Aug 29, 2007 - The Italian government is expected to cut GDP growth forecasts for 2007 and 2008 and review upwards its public deficit targets, the daily Il Sole 24 Ore said, citing preliminary estimates.

Experts of the economy ministry are holding their first meeting today to draft the 2008 budget, but updated figures are only expected in a few weeks' time, it said.

Preliminary estimates indicate that 2007 GDP growth could be 1.8 pct instead of the 2.0 pct forecast released in June, while growth could reach 1.7 pct in 2008 instead of 1.9 pct, it said.

The public deficit would total 2.6 pct of GDP this year against the 2.5 pct target released in June, and reach 2.3-2.4 pct in 2008 compared with the previous estimate of 2.2 pct.