Solunion Export Risks Report
It has approved emergency deficit cuts for 2017, as promised to the European Commission.
![[Img # 22868]](https://empresaexterior.com/italia-recortes-de-emergencia-para-reducir-el-deficit-fiscal-en-2017/upload/img/periodico/img_22868.jpg)
Italy has approved cuts to emergency deficit by 2017, as promised to the European CommissionThe additional cuts amount to €3.400 billion, equivalent to 0,2% of GDP. Thus, the GDP growth forecasts They have been revised slightly upwards, from +1,0% to +1,1%, but have been reduced for next year: +1,0% (from +1,3%).
These measures should allow this year's budget deficit target to be reduced from -2,3% to -2,1% of GDP. In 2016, the fiscal deficit fell to -2,4% of GDP (from -2,7% in 2015), mainly due to lower interest expenditures.
It is estimated that ECB Quantitative Monetary Easing Program has helped to Italian government to save €5.000 billion a year in interest expenses. primary fiscal surplus It increased slightly to +1,5% of GDP in 2016, after reaching +1,4% in 2015. The fiscal target for 2018 has been confirmed at +1,2% of GDP. Given the prevailing risks, such as the fragility of the banking sector, the possibility of early elections, and the weak expected GDP growth (+0,9% in 2017-18), the 2018 fiscal target appears ambitious.
Source: Solunion
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