Italy will lower its 2014 GDP forecast to -0.2% or -0.3% from the +0.8% current forecast, according to Reuters who cites an unnamed source.
At the same time, the Treasury will hike its debt-to-GDP forecast to 2.8% from 2.6% and next year’s forecast to 2.8% from 1.8%.
They had hoped to close the structural budget deficit by 2015 but they’re not negotiating with the EU to extend that to 2016.
The new forecast would be in-line with the consensus so it shouldn’t strike the market as a huge surprise.
