GDP this year to be weaker than expected
Latest Treasury forecasts show economy likely to fall by 1.7%20 September, 13:21
GDP may average a loss of 1.7% this year, which is slower than previous estimates of a 1.3% drop for 2013, Regional Affairs Minister Graziano Delrio said after a cabinet meeting. The latest forecast for this year was also slightly more pessimistic than the 1.6% contraction predicted earlier this month by Italian industry federation Confindustria. A weaker GDP makes the government's job harder when calculating debt and deficit ratios as the smaller the GDP, the larger the debt appears in proportion.