(Bloomberg) -- Italy is set to miss the government’s target for economic output this year following an accounting revision, according to Finance Minister Giancarlo Giorgetti.
The recalculations by the nation’s statistics institute “make it harder to reach 1% growth this year,” Giorgetti told lawmakers in parliament in Rome on Tuesday. However, this “doesn’t raise concerns for the following years,” he said.
He spoke a day after the Bank of Italy said gross domestic product would probably grow less than previously expected in 2024. Last week, Istat reduced its second-quarter output estimate by 0.2 percentage points.
The government’s 2024 GDP forecast was more optimistic than that of the European Commission, the OECD and the IMF, who see growth between 0.7% and 0.9%.
The European Union has started a so-called excessive deficit procedure against Italy and slower growth will make it more difficult for the country to meet the bloc’s deficit and debt targets.
Giorgetti told lawmakers that his approach to public finances will remain “prudent.” He confirmed that Italy “can achieve a reduction in the debt-to-GDP” ratio that will take it out of the procedure from 2027.
The minister also said he plans to raise state estimates of house values which are used to calculate taxes. That would help increase the government’s tax inflows. He said the review would likely target properties that have benefitted from state-funded renovations.
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