Italy has «remarkable structural challenges», and among these theaging of the population. He states it S&Punderlining that among the challenges there are also the growth of productivity and obstacles to business investments. “There fiscal trajectory it’s improving,” he highlights S&Ppredicting that by 2025 Italy can achieve a primary balance. However, the agency notes, the high interest expense will weigh on the outcome of overall budget.
«We expect that the deficit will fall below 3% of GDP by 2027 and that the primary balance will come back in surplus by 2025signaling a gradual improvement in fiscal trajectory underlying,” he says S&P. However, the agency predicts an “increase of public debt», mainly due to adjustments related to Super bonus.
THE’stable outlooksecond S&Pis based on the forecast of an increase in debt and on a more resilient one economic growth thanks to the stimuli offered by European funds.